HTC was once the life of the party in the Android camp. By jumping on the open source train early on, HTC rode off into the sunset in a position seemingly more lucrative than being in the business of printing money. And now? Well, for HTC's sake, let's hope the first quarter of 2012 isn't a sign of things to come. Amid increasing competition from Apple and Samsung, HTC on Tuesday reported a 70 percent decline in first quarter profit. For those of you keeping count, it's the second consecutive time HTC posted a sequential drop.
Scanning AMD's financial report for the first quarter of 2012, you would think the Sunnyvale chip maker is in big trouble. Revenue was $1.59 billion, a nice number if not for the fact that it represents a net loss of $590 million, or $0.80 cents per share, along with an operating loss of $580 million. That's a 6 percent sequential decrease and a 2 percent decrease year-over-year. Non-GAAP earnings were $0.12 a share. So why wouldn't investors want to hit the panic button?
Competition's a pain in the backside, especially when your competitors are launching products people actually want as opposed to stinking up the joint with promises of something better on the horizon. That pretty much sums up Nokia's business strategy, as the handset maker found itself in a smartphone holding pattern during its shift to Microsoft's Windows Phone platform and the launch of the Lumia 900. As a result, Nokia posted a $1.2 billion loss during the first quarter of 2012 and blamed it on "competitive challenges and seasonality."
When Mark Zuckerberg made the move to acquire Instagram for $1 billion -- Facebook's largest acquisition ever, and one that Zuckerberg negotiated almost entirely on his own without involving his board of directors, according to a report in The Wall Street Journal -- he may have tipped his hand and revealed how much the world's largest social playground is worth. That figure? At least $75 billion, if you can believe it.
Verizon had it going on in the first quarter of 2012. Solid performance in both wireless and wireline business segments led to a consolidated double-digit percentage growth in year-over-year quarterly earnings results, a 4.6 percent leap in year-over-year quarterly revenue growth to $28.2 billion, and $6 billion in cash flow from operating activities, up $922 million compared with the same quarter in 2011.
AOL today entered into a definitive agreement to sell more than 800 patents outright to Microsoft and grant an additional 300 non-exclusive patents and patent applications to the Redmond software giant for $1.056 billion. A "significant" portion of the money raised will go to shareholders, AOL announced.
It really wasn't all that long ago when HTC was on top of the world. HTC was the goose that only laid golden eggs, again and again and again. And now? Competition in the Android market is fierce, more than ever before, with the likes of Samsung and Motorola throwing their weight around. As a result, HTC saw its net profit slide 70 percent during the company's first fiscal quarter of the new year.
Like Mark Twain's false death report (before he actually died), Research In Motion insists that the media has it all wrong and that supposed plans to exit the consumer market have been greatly exaggerated. The confusion came after RIM CEO Thorstein Heins addressed a shaky financial report in which the company reported a loss of $125 million for the quarter ending March 3, 2012.
Coming out of left field (from a 'fowl' hit? *groan*) is Rovio Entertainment's announcement that it has acquired Futuremark Games Studio, the gaming arm of benchmarking software developer Futuremark. Rovio, of course, is the developer behind the hugely popular Angry Birds franchise, which was just recently launched into space in the latest multi-platform installment, Angry Birds Space.
It was being reported last week that Micron Technology issued a bid of $1.5 billion to take over Elpida Memory, which had fallen on tough times after a prolonged slump in the DRAM market, and it now appears as though Micron is the frontrunner to acquire the bankrupt memory maker. Toshiba and Globalfoundries were two other names that had been thrown around as potential suitors, but either they didn't bid, or they were outbid by Micron.