Intel this week reported third-quarter revenue of $13.5 billion, operating income of $3.5 billion, and net income of $3 billion (or 58 cents per share), the latter of which represents 48 percent sequential growth. A peek around the web reveals that Intel's profit growth is almost 10 percent higher than Wall Street was expecting, allowing Intel to hush the naysayers during a period of transition to mobile.
Dell's future is as uncertain as it's ever been, and not just because the PC market is in a slump as consumers flock to mobile devices. The other major unknown is whether Dell will ultimately accept Michael Dell's proposed $24.4 billion buyout offer and go private, or if the board will be swayed by Carl Icahn's alternate deal that would keep the company public. As all this unfolds, Dell (the company) is seeing its profits get sucked into a vortex of uncertainty.
Compared to last year, Nvidia is moving in the right direction.
Nvidia reported revenue of $954.7 million for the first quarter of fiscal 2014 ended April 28, 2013. That's down 13.7 percent from $1.11 billion in the fourth quarter of fiscal 2013, though up a little more than 3 percent compared to last year. A similar story played out with regards to Nvidia's net income (profit), which totaled $77.9 million for the quarter, down 55.2 percent sequentially but up 29 percent year-on-year.
The Santa Clara chip maker's profit slid 27 percent compared to one year ago.
So the sky might not be falling, but Intel's fourth quarter profit sure did. Intel reported net income of $2.5 billion for the fourth quarter of 2012, down 27 percent from $3.4 billion in Q4 2011. As one might expect, the world's largest chip maker was hurt by a slowdown in PC sales as the market shifts towards mobile devices like tablets, smartphones, and hybrid laptops. Nevertheless, Intel said it wasn't surprised by its Q4 performance.
HTC continues to struggle to find a way to flip the kind of profits it did during the company's heyday, back when it was moving handsets like gangbusters and practically had a license to print money. But the times, they are a-changin' and the HTC of old is having trouble competing in this new landscape dominated by Apple and Samsung, the latter of which has picked up the Android torch that HTC helped ignite. Ginormous profit dips are the norm for HTC these days, which today posted a record 79 percent drop in quarterly profit.
Thanks in large part to strong sales in China and other emerging markets, Lenovo's latest quarterly profit shot up 45 percent, the company said today.
"We had another quarter of solid growth across all geographies," said Wong Wai Ming, CFO of Lenovo.
Lenovo appears to be on a roll having recorded profits of $77 million, or 81 cents per share, for the three months ended September 30, 2010. That's up from $53 million one year ago. On a global scale, Lenovo's sales are up 41 percent from one year ago to $5.8 billion.
As a result, Lenovo, currently the world's fourth-largest PC maker, increased its worldwide market share from 1.9 percent to 10.4 percent.
"We have good momentum to keep growing, especially outside China," said CEO Yang Yuanqing.
Apparently tough economic times are good to Intel. The chip maker has reported their quarterly earnings and they not only met expectations, they set a personal record. Intel had over $11 billion in revenue last quarter. That's the highest the company has ever had, a healthy 18% rise over last year. " "We continue to see healthy worldwide demand for computing products of all types," said Intel CEO Paul Otellini
Intel lowered their expectations last month from $11.2bn to $12bn, to $10.8bn and $11.2bn. So they were pretty much dead on. In the quarter now underway, Intel is expecting to be in the high $11 billion range. It's certainly a good time to be Intel. These high earnings give Intel the leeway to pursue mobile ventures like MeeGo and lower power Atom chips. AMD? Are you still out there?
Google just came clean with their Q2 revenue numbers, and they look just about as good as everyone expected. Google brought in $6.82 billion in the second quarter. This is a 24% increase over last year at this time, but only a 1% increase over last quarter.
The vast majority of the mountain of cash came in from Google-owned sites. In all that chunk was $4.5 billion, or 66% of the total. AdSense programs brought in an additional $2.06 billion. Google is clearly not hurting for money right now, though it is interesting that the quarter to quarter growth this year has been minimal.
While revenue did beat expectations, actual profit was lower due to the cost per click on Google ads increasing only 4%. Google's stock price has dipped 18.5% in the last few months, and took another 4% hit in after-hours trading.
Things aren't looking so hot over at Nokia, which is still the world's largest maker of mobile phones. According to the company's recently updated full year 2010 outlook, Devices & Services sales aren't going to meet expectations.
"Nokia now expects Devices & Services net sales to be at the lower end of, or slightly below, its previously expected range of EUR 6.7 billion to EUR 7.2 billion for the second quarter 2010," Nokia said. "This update is primarily due to lower than previously expected average selling prices and mobile device volumes."
According to Nokia, industry mobile device volumes will shoot up by about 10 percent in 2010 compared to 2009. Unfortunately for Nokia, the handset maker doesn't expect to make the most out of it, saying that its market share will likely remain flat for the rest of 2010.
While nobody in Nintendo's ranks is freaking out just yet, the company did post an annual profit decline for the first time in six years, the Wall Street Journal reports. What's more, Nintendo said it expects the backwards trend to continue again this fiscal year while the company focuses on new products to spur growth.
Sales of Nintendo's Wii and DS handheld consoles have finally started to slow down. For the fiscal year ended March 31, Nintendo said it sold 20.53 million Wii consoles world-wide, down 21 percent from the previous year. And for this fiscal year, Nintendo expects sales to drop yet again, this time to 18 million units.
"There's a lot of expectation that Nintendo will continue to dominate. And that's a tall order in this industry, which is characterized by changes in leadership in every generation," said Jay Defibaugh, equities research director at MF Global FXA Securities.
Going forward, Nintendo will face increased competition from Microsoft and Sony, both of which are planning to introduce motion-sensing controllers for their own respective consoles. Combined with the Wii's inability to play back high-definition content, Nintendo has reason to be concerned.
On the handheld front, Nintendo will release the 3DS next year, which won't require any goofy looking glasses. If it works as well as Nintendo anticipates, the company will be better prepared to fend off increasing competition from mobile phones, which have started to make a harder push into the casual gaming segment.