News tagged ‘profit’
According to Zol.com.cn, which is a Chinese news site owned by CBS, Apple is going to assign 1-2% of its product profits to Foxconn workers.
As we wrote before, Apple decided to investigate the case about suicides at Foxconn plant, and recently found out that employees become unhappy because of low wages. The company sees the way of solving the problem in increasing wages for workers. The additional money will come directly from the profits of those of the products that are assembled there.
Workers who take part in the production of iPad will be first to receive the increased pay. Report reveals that currently Foxconn receives 2.3% of the iPad's total price.
Earlier Foxconn also claimed about its decision to give 20% more wage for its workers.
It is known, that entry-level employees who work at the factory in Longhua receive only $131,80 per month of work. To earn more, they usually sign special "voluntary overtime affidavits".
According to a report by Marketwatch (which in turn refers to a figures revealed by Strategy Analytics), smartphones now take 18% share on the market of all mobile phones.
"Sales are driven by healthy operator subsidies, competition between vendors, and a rising number of cheaper models built around operating systems such as Google Inc's Android and Nokia Corp's key smartphone platform Symbian."
It is interesting that different smartphone makers sometimes compete on different markets. Strategy Analytics reveals that Nokia shows good results in India and China while Motorola focuses more on US.
As we wrote before, Motorola raised up its profits after producing its Android-based Droid/Milestone, which is frequently called the closest rival to Apple's iPhone.
Nokia's purpose is to gain the leadership on the markets that are only emerging. In the first quarter the company has 21.5 million smartphones sold, but these are mostly cheap models that were shipped primarily to South America and China. North America remains a "problem child" for Nokia. The company's sales make 40% of all the sales in this quarter.
RIM has 10.6 million BlackBerries sold and takes second place with its 19.7% share.
Globally Apple has 16,4% market share in selling smartphones in this quarter and became a mobile vendor number one in the US. The company made record 8.8 million iPhone sales. Among all mobile phone makers Apple hold 3% global market share.
This spring quarter Motorola had reportedly sold 8.5 million phones, which makes it the second biggest US phone maker after Apple that sold 8.8 million iPhones in the same period.
According to a Forbes report, one year ago Motorola had better results - 14,7 million phones sold. But the profit this year is down only by 9% because the company had changed its strategy and now successfully sells more sophisticated smartphones instead of cheap phones.
Motorola had best selling results four years ago when it was selling Razr model. In 2006 it was releasing 46 million phones per quarter. But these days mobile providers push companies to deliver cheap phones and because of it Motorola's profits are falling down.
The company had big plans on its Milestone/Droid device which ships with Android OS. It was heavily promoted by Motorola and Verizon as the best Android phone available, but the company sold only 2.3 million devices in the spring quarter, which is only 27% of the total phones sold.
Recently Apple has hired new global editorial games manager for iTunes App Store. His name is Matt Cassamassina and he has over 13 years experience of games reviewing.
Matt started his game career with the launch of N64.com. Later this resource was bought by IGN, where he continued to work. In the gaming industry he is known as the expert and information source about Nintendo.
After his appointment he wrote in his blog:
"I will be leading the charge for games on the App Store, so whether you browse through iTunes, iPhone, iPod Touch or iPad, the games content you see will be handpicked and organized by me and my team. I couldn’t be happier."
Matt Cassamassina will start his work in Apple at the beginning of May.
App Store games became very popular since the release of iPod Touch. Profit from game creating and selling it on iTunes attracted many single developers which lead to a success of the iPhone and iPod Touch as handheld gaming devices. The popularity of App Store games is even frightening for Sony and Nintendo that are now looking forward to create something innovative in the gaming industry.
Recently Apple Chief Operating Officer Tim Cook and Chief Financial Officer Peter Oppenheimer had a financial conference call with the press and analysts. Here are some interesting facts we gained from the conversation:
Yesterday the Associated Press announced plans to create a new unit named "AP Gateway". It will focus on creating an application for mobile platforms and particularly for iPad tablet device.
It is likely that their app will require a paid subscription, but at first it may appear as free, according to AP senior vice president Jane Seagrave.
AP Gateway will work with local news affiliates to create package of their own content.
Other publishers are still expressing concern over the profit that will be shared with Apple and the latter's unwillingness to report information about subscribers (which is important for marketing and tailoring publisher's content).
Shareholders meeting started at 1 p.m. EST Thursday. For almost 2,5 hours they discussed different topics and revealed some interesting information.
First of all, Apple is going to open 25 retail stores in China. As you know, the first Chinese store was built in 2008, and since then only plans about revealing another store were announced.
Secondly Steve Jobs told Apple will build its reserves to make big investments in the future. He also mentioned it is a better way of dealing with profit than paying dividends or doing stock buybacks. At this moment Apple has ~40 billion dollars in their chest.
An interesting fact was revealed by Admob Mobile Metrics when they ran an opt-in surveys on iPhone, iPod Touch, webOS and Android devices to understand how they are engaging and interacting with applications.
As you see on the photos below, it becomes obvious that iPod Touch is more popular for teenagers. Moreover, as latter are mostly supported by their parents, they use these devices differently, and that is why the number of free downloads is so high for iPod Touch users.
Apparently, iPods make a high profit to Apple, but is this so because of children?
Apple today announced financial results for the fourth fiscal quarter (third calendar quarter) of 2009. Apple posted revenue of $9.87 billion and net quarterly profit of $1.67 billion, or $1.82 per diluted share, compared to revenue of $7.9 billion and net quarterly profit of $1.14 billion, or $1.26 per diluted share, in the year-ago quarter. Gross margin was 36.6 percent, compared to 34.7 percent in the year-ago quarter, and international sales accounted for 46 percent of the quarter's revenue.
The numbers represent the most profitable quarter in Apple's history and include record-breaking Mac and iPhone quarterly sales.
Conference Call Notes
Read the rest of this entry »
Here is top 10:
- Royal Dutch Shell
- Exxon Mobil
- Wal-Mart Stores
- ING Group
- Toyota Motor
via deepapple and fortune
Generator Research says that Nokia's smartphone marketshare will plummet from over 40 percent today to only 20 percent by 2013. They predict that, on the other hand, will hit 33 percent marketshare by that point, matching Nokia sometime in 2011—just two years away—with 77 million phones.
That scenario, though, depends on some awesome conditions for Apple (think about 77 million iPhones!) on top of some truly horrific ignorance from Nokia, letting the smartphone market go almost entirely with a half-assed defense of its position as it focuses on profits from its mass volume low-cost wares in developing countries. Probably Nokia will stop making smartphones like the N97 some day and will create something nice.
One of the common complaints about Apple’s iPhone–and one that did not get solved with the launch of the iPhone 3G–is the lack of a copy-paste function. An independent developer Zac White has taken matters in his own hands and founded a non-profit, open source, community project called
Investment bank Piper Jaffray said Tuesday it believes Apple is readying new iPod and notebook products that will apply downward pressure to profit margins because they'll be priced more affordably, such as 13-inch MacBook that will fetch less than $1000.
"We believe there is an 80% chance Apple will introduce redesigned MacBooks and possibly new MacBook Pros at lower price points," he wrote. "Specifically, Apple may re-enter the $999 price point (currently $1099) with the MacBook, or test the $1,799 price point with the MacBook Pro (currently $1999)."
The Piper Jaffray analyst reiterated his Buy rating and $250 price target on shares of Apple.
Cupertine California—July 21, 2008—Apple today announced financial results for its fiscal 2008 third quarter ended June 28, 2008.
Apple shipped 2,496,000 Macintosh computers during the quarter, representing 41% unit growth and 43% revenue growth over the year-ago quarter. The Company sold 11,011,000 iPods during the quarter, representing 12% unit growth and 7% revenue growth over the year-ago quarter. Quarterly iPhone units sold were 717,000 compared to 270,000 in the year-ago-quarter.
The Company posted revenue of $7.46 billion and net quarterly profit of $1.07 billion, or $1.19 per diluted share. These results compare to revenue of $5.41 billion and net quarterly profit of $818 million, or $.92 per diluted share, in the year-ago quarter. Gross margin was 34.8%, down from 36.9% in the year-ago quarter. International sales accounted for 42% of the quarter’s revenue.
Not bad at all.