Financial -- Engadget Mobile

financial posts

Nokia posts $834 million quarterly loss, smartphone share down to 35%

by Thomas Ricker posted Oct 15th 2009 @ 8:12AM

Nokia just posted a net loss of 559 million euro (834 million dollars) for the third quarter -- its first quarterly loss in a decade according to the AFP. The loss comes after a reported 20% drop in sales and 1.17 billion euros in write-downs, mostly for impairment charges on Nokia Siemens Networks. Nokia also said that its smartphone market share dropped to 35% versus 41% in the previous quarter. With fierce competition from Apple and RIM, and Palm just launching its Pre into Nokia's European stronghold, well, it's a good thing Nokia's branching out into untapped markets like single-core Atom-based netbooks.

Read -- Smartphone slip
Read -- First loss in a decade
Read -- Nokia Q3 statement

Palm announces first quarter results: $164.5m net loss, 823k phones sold

by Nilay Patel posted Sep 17th 2009 @ 4:51PM

Palm just announced its first quarter results -- the first to really include numbers from the Pre -- and they're positive (well, depending on how you look at things), with a $2.8m gross profit on $68m in revenue. Actually, that's a little low, since Palm uses the same sort of subscription accounting for the Pre as Apple does for the iPhone, so the unofficial numbers are higher: $100.6m gross profit on $360.7m in revenue. Still, we should point out that according to GAAP (you know, the rules that matter), the outfit had a net loss in fiscal Q1 2010 of $164.5 million, while the non-GAAP net loss was pegged at $13.6 million. Although Palm wouldn't include break out specific sales data, they did say that the "vast majority" of the 823,000 phones they sold in Q1 were Pres, so take that as you will. Oh, and if you were still holding out hope for more Palm WinMo phones, it's all over -- Palm is doing 100 percent webOS development from now on. (Shocker!).

Update 1: Rubinstein deftly sidestepped the question of why Pixi was launched on Sprint as opposed to another carrier, saying "They're a great partner and we're looking forward to a great holiday season."

Update 2: Asked about MOTOBLUR, Jon said "I don't know much about MOTOBLUR, but I think to build really great products, you have to control the entire experience -- you have to own the OS and the services around it."

Update 3: Jon just said "We're on a web schedule with updates -- you'll see a steady stream of updates and features."

Update 4: Revenue on accessories and anciliary products were "really very small, immaterial to overall trends." When pressed if it was in the low, single-digit millions, CFO Doug Jeffries emphasized, "very, very small."

Sprint loses $384m, 257k subscribers in first quarter of Pre availability

by Nilay Patel posted Jul 29th 2009 @ 11:44AM

The Pre might have slowed the drain at Sprint but it hasn't managed to turn things around completely -- America's number three carrier posted a second-quarter loss of $384m as it lost another 257,000 subscribers. That just continues Sprint's trend of bleeding customers to the competition, and we doubt this balance sheet will turn around anytime soon -- not only will next quarter reflect the $483m purchase of Virgin Mobile USA, it's pretty clear that Verizon will get the Pre and AT&T will carry another webOS handset, leaving Mr. Hesse and crew without their shiny halo device to lure new subs to the fold. We'll see what Sprint does to turn this all around -- did someone say they need a Hero?

Nokia cuts market share targets as Q2 profits plummet

by Thomas Ricker posted Jul 16th 2009 @ 6:53AM

Ok Nokia, this is getting serious. The world's largest cellphone maker just announced a 66 percent yearly drop in Q2 profit while lowering its 2009 market share target for its cellphones. Originally, Nokia had expected market share to rise in 2009, presumably based on a successful launch of the N97 flagship device. However, outside of a core group of S60 diehards, the N97 has been universally panned in both reviews and user forums alike. And with nothing but rumors of an Atom-based Nokia netbook on the immediate horizon, well, let's just say that we're suddenly concerned about the health of our friends from Espoo.

Former Motorola CFO alleges that company lied about financial data, Santa Claus

by Tim Stevens posted Apr 13th 2009 @ 8:04AM

There have been no shortage of legal wranglings in the electronics space lately, usually between two well-entrenched corporations, but this one's a little more interesting: a former officer taking the offensive against his former office. Paul Liska, previous head of all things financial at Motorola, is alleging that the company has been misleading investors for quite some time regarding the performance of its Mobile Devices unit, and that when he raised his concerns to the board he was given an escorted trip out the building for his troubles. Moto, on the other hand, is saying that the company's current financial mess is all thanks to a scheme concocted by Liska himself, who then attempted to blackmail the company before trying to paint himself as a whistleblower. That's an awful lot of intrigue, but given the thrilling, cut-throat world of chartered accountancy (as depicted in Monty Python's documentary The Meaning of Life), truly anything can happen.

[Via Phone Arena]

N2 recall leaves Neonode reeling, pleading for patience

by Darren Murph posted Jul 31st 2008 @ 3:22AM

From the outside, it has been easy to assume that everything was humming along nicely at Neonode's California / Sweden-based offices. Based on a recent open letter issued by the interim CEO and chairman Per Bystedt (not to mention the earnings report), that is indeed not at all the case. Neonode has failed at meeting guidance and anticipated sales for this year, with a number of things partially to blame. For starters, it admittedly tried to enter "too many markets, too fast," and a recall of the N2 surrounding "reception issues" didn't make things any better. Bystedt confessed to having just south of $3 million of his own money invested in the outfit, while he asked for other shareholders to be patient as he attempted to right the ship. Best of luck to ya -- we hear it's a pretty tough sector. [Warning: PDF read link]

[Via RCRWireless]

Sony Ericsson launches ho hum Z780 and G502 cellphones as profits plunge

by Thomas Ricker posted Apr 23rd 2008 @ 3:43AM

In a move meant to, uh, distract investors from its announced 48% profit downturn (compared to Q1 of the previous year), Sony Ericsson just announced a pair of mid-range handsets. The Z780 clamshell -- now official -- is the global sister to the announced Z770 for Europe. As such, she comes packing UMTS/HSDPA 850/1900/2100 and quad-band GSM/GPRS/EDGE radios. While it comes loaded with Google Maps for Mobile and aGPS navigation, you won't get much use from it on that itty bitty 128 x 160 pixel display of unknown dimensions. Hell, that bezel chews up an equivalent amount of real estate. The G502 candybar also features Maps but lacks aGPS. No worries for US Americans though as it's likely to stay put in Europe with UMTS/HSDPA 2100 and GSM/GPRS/EDGE 900/1800/1900 radios. Both will feature M2 memory expansion, Bluetooth, and 2 megapixel cameras when they launch in "selected markets" come Q2. Sorry Sony Ericsson, but we're not seeing a lot here to distract investors (or consumers) for very long. Xperia X1 please?

Update: Sony Ericsson has published conflicting information about the Z780's resolution. It's 2.2-inches and 320 x 240 pixels in the press release but 128 x 160 pixels on the product page.

Read -- Profits
Read -- Phones

Virgin Mobile stock takes a beating, revenue not forecasted to grow

by Darren Murph posted Mar 14th 2008 @ 5:30AM

Hot on the heels of dismal news from the Helio camp comes word that frowns are all the rage over at Virgin Mobile, too. After warning that "current quarter subscriber growth would fall to a range of 5,000 to 20,000" (compared to a net gain of 210,000 in Q4) and expressing concerns that the weakness in the US economy would further harm its chances at having a ~~stupendous~~ decent year, shares of its stock sank some 54-percent to $2.30 (but did manage to recover somewhat). Potentially more worrisome, however, was the pessimistic views from analysts; for instance, Bear Stearns' Phil Cusick noted that after two disappointing quarters in a row, he felt that the "softening economy and increased competition had eliminated management's ability to forecast its business." Of course, when the street expects your revenue to increase by some 20-percent and you calmly explain that it downright "will not grow this year," we suppose the stock drop isn't all that shocking.

[Via mocoNews]

Motorola's profit forecast goes from bad to worse

by Chris Ziegler posted Jul 12th 2007 @ 3:06AM

Maybe the Sidekick Slide is Moto's savior -- then again, maybe it's not -- but either way, the company seems to need a huge hit (or three) in the wings to turn its luck around. In the wake of two hefty rounds of job cuts, Motorola has now announced that it'll lose money in the second quarter and no longer expects its mobile devices unit to turn a profit at all this year, thanks largely to underperforming sales in Europe and Asia. In other news, Garriques' shoes have now been filled by a man going by the name of Stu Reed, apparently some "supply chain executive" who has been tapped to ~~play the next fall guy~~ get this sinking ship back on track. We've said it before and we'll say it again: where's the US version of the Z8, Moto?

Amp'd regains connectivity, drops lawsuit against Verizon

by Darren Murph posted Jun 26th 2007 @ 8:00AM

Apparently, it would just be far too easy for Amp'd to bow out of the fledgling MVNO realm after filing for bankruptcy, as the company has recently reached an agreement with Verizon Wireless that enables it to use The Network in exchange for Amp'd dropping its lawsuit. The suit was reportedly filed after Verizon moved to kick the Los Angeles-based Amp'd off its network, but we can't exactly blame Verizon for being quite perturbed after not receiving $33 million in payments. Of course, we're sure this spat is far from finished, but the case will press on next week while Amp'd customers can once again intrepidly chat away on Verizon's equipment -- for the time being, at least.

[Via mocoNews]