Stock is up 27.29 percent for 2014 thus far, new products ahead
Apple's stock closed on Friday at an all-time record high, on a straight split-adjusted basis, cracking $101 per share. The 74-cent rise on Friday rang down the curtain on a week that saw the stock gain just over $3 per share, culminating in the record-breaking performance weeks ahead of anticipated new product announcements, and months before the start of the holiday buying season, which is again expected to favor Apple over its primary rivals. Thus far in 2014, AAPL is up 27.29 percent.
Charter swept up in FCC info dragnet, September 11 deadline for submissions
A request for information from the US Federal Communications Commission (FCC) has been submitted to Comcast and Time Warner Cable, demanding the pair detail its Internet and programming agreements before the merger is approved. Information sought are broadcast deals with sports leagues, Internet network management such as that with Netflix traffic, consumer data caps, and other information deemed vital which may impact relations with customers should the deal be approved.
Firm has worked with Dell, HP, Logitech on a wide variety of consumer electronics
Google has acquired design firm Gecko, in an effort to bolster its Google(x) product manufacture efforts. The firm has previously done industrial design work for OLPC, Logitech, Sling Media, Herman Miller, Hewlett-Packard, and contributed to the Fitbit design, pre-launch.
Amazon hopes contract will pave the way for cloud-based confidential data
Amazon Web Services has received the first ever U.S. Department of Defense level three through five provisional authorization for the AWS GovCloud (US) region under the Defense Information Systems Agency's (DISA) codified Cloud Security Model (CSM). This new authorization allows Department of Defense users to conduct development and integration activities for everything but classified workflows with Amazon's service.
HP continues to struggle in number of areas despite revenue improvement
HP's quarterly revenue in the last three months has gone up, according to its Q3 financial results announcement. Net revenue in the third quarter reached $27.6 billion, representing a 1-percent gain on the same period last year, and an improvement on the previous quarter's $27.3 billion, though elsewhere in the figures, it continues to struggle.
Compelling endorsement from Morgan Stanley may encourage buyers
Apple's stock closed on Tuesday with a new 52-week high, and at one point in the day threatened to top its all-time highest stock price (based on straight split-adjustment). It officially closed at $100.53, not far from its all-time split-adjusted high of $100.72, though it hit $100.68 in intra-day trading. The company's valuation also rose to a market cap of $602 billion.
New division encompasses 44,000 patents, three major technologies
BlackBerry has spun off a new business unit, collecting the majority of its unique technologies under one roof -- the BlackBerry Technology Solutions (BTS) division. Dr. Sandeep Chennakeshu will lead the new group, which encompasses embedded software group QNX, "Internet of Things" division Project Ion, cryptography division Certicom, RF antenna tuning group Paratek, and 44,000 associated patents.
Prediction makes assumptions on launch availability, but based on supplier data
Amit Daryanani of RBC Capital Markets, who currently forecasts sales of 56 million iPhones in the December quarter, has told investors that depending on availability and features, the next generation of iPhones could sell as many as 75 million units in the final quarter of the year, which would be an all-time record for any manufacturer, even Apple itself. By comparison, last year Apple ordered 60 million units ahead of the iPhone 5s and iPhone 5c debut.
Lenovo on track to buy IBM server unit for $2.3 billion
IBM has gained a US national security regulatory agency's approval in one of its first steps to sell its server division to Lenovo Group, a Chinese company. The Committee on Foreign Investment in the US has deemed that the $2.3 billion dollar sale can continue with little or no risk to US security interests, despite rising conflicts about Internet issues and continued espionage allegations between the nations.
London-based Vedanti Systems Limited allege post-it notes prove misdeeds
London firm Vedanti Systems Limited (VSL) is suing Google over the compression algorithms used in YouTube. According to the complaint, filed on August 10, Google uses the technology across a wide swath of Google offerings, with YouTube being the primary violator. VSL attorney Adam Levitt wrote in the complaint that "this case is yet another of the many occasions on which Google has unlawfully taken, rather than developed for itself or paid for, valuable technology that is core to the functioning of its many businesses and products."
Directors, executives accused of bringing company into legal trouble
A new lawsuit, filed on behalf of plaintiff R. Andre Klein, is seeking damage compensation for Apple shareholders as a result of alleged misconduct by the company's directors and executives. Lawyers for Klein accuse former CEO Steve Jobs, current CEO Tim Cook and others of "breach of fiduciary duty, gross mismanagement, corporate waste, and breach of the duty of honest services." Specifically, by engaging in anti-poaching practices, Apple leaders are said to have caused the company to break antitrust laws, issue misleading proxy statements, and suppress workers' wages.
Terms of Ask.fm purchase involves exit of founding brothers
Ask.fm, the controversial question-and-answer site, has been acquired by the parent company of Ask.com and Tinder. InterActiveCorp picked up the service for an undisclosed amount, though under one of the terms of the purchase, founding brothers Mark and Ilja Terebin have been forced to cash out and leave the company entirely.
Reminds consumers Internet currency is a target for hackers, comes with additional cost
The US Federal Consumer Financial Protection Bureau (CFPB) issued a warning on virtual currencies like Bitcoin and Dogecoin on its website today. In the warning, the CFPB sounds off some well-known issues that generally circle around Internet currencies, such as the risk of hacking, fraud and lack of regulation in holding houses.
Company records expected to be broken next quarter
Video card maker Nvidia yesterday reported revenue for the second quarter of its 2015 fiscal year ended July 27. It reported revenue of $1.10 billion, up 13 percent from $977 million a year earlier, and in line with the previous quarter. Revenue for the first half was up 14 percent, to a record $2.21 billion from $1.93 billion a year earlier. In line with record revenue, the company also posted record gross margin of 56.1 percent.
John Legere predicts T-Mobile will overtake Sprint in total customer numbers this year
T-Mobile is the largest pre-paid wireless provider in the United States, the carrier has revealed. In an announcement proclaiming the high figures, president and CEO John Legere claims the customer increases will continue to a point where it will overtake Sprint and become the third-biggest carrier in the country in terms of total subscriber numbers.
Consolidation deal dead in the water due to alleged non-response
Rupert Murdoch and 21st Century Fox has rescinded its offer for its consolidation deal for Time Warner. Murdoch himself took to the airwaves, blaming Time Warner for the breakdown. He said that "Time Warner management and its board refused to engage with us to explore an offer which was highly compelling."
Numerous S&P companies may be reclaiming stock to avoid selloffs
Apple's most recent stock buybacks set a record for "the highest four-month returns among the 20 biggest quarterly repurchases by any company since 1998," says Bloomberg, using data gathered in collaboration with Standard & Poor's. The publication notes that Apple's stock value has increased 77 percent during the last 15 months, and 25 percent since last year's $18 billion buyback. It adds that "the ratio of Apple's per-share profit growth to its overall earnings has increased due to buybacks;" in the last quarter, per-share profit grew 19.6 percent year-over-year, versus a net income growth of 12.3 percent.
Chen expects profitability before the end of the year for BlackBerry
According to an internal memo circulating around the company, BlackBerry has exited its internal reorganization process. CEO John Chen told the remaining staff that "the workforce reduction that began three years ago is now behind us." The memo declares that the company is now on the path to profitability, and will start making strategic acquisitions to boost the company's growth.
Caviar purchase fills out Square restaurant service range
Payment processing service Square has acquired a food delivery service. The purchase, estimated to be worth around $90 million in stock, sees Square take control of Caviar, a start-up delivery firm which allows restaurants and other food-related establishments to offer deliveries of orders to customers, even if the business does not typically offer any delivery service at all.
'Catch 22' generated by court, US copyright office
Aereo is "figuratively bleeding to death," according to a court filing made last night by the Supreme Court-impacted Internet video service. The filing cites "staggering costs" that it is still paying to stay alive as a business entity while the court and the US Copyright Office debate if it should be treated like a cable company, as the Supreme Court alluded in its ruling against Aereo.
Acquisition proceeds while still waiting for final US approval
(Updated with Apple welcoming page) Vivendi's Universal Music Group has completed a sale of its 13 percent stake in Beats to Apple, in a deal worth $404 million, according to an official statement. The company hasn't released any other details. In all, Apple is paying about $3 billion to acquire Beats.
T-Mobile surpasses 1M customer additions for fifth successive quarter
T-Mobile is continuing to enjoy high customer growth in the United States, with the carrier receiving more than 1 million total branded net customer additions in the last quarter, according to its latest quarterly financial report. Taking into account unbranded net customer additions as well, T-Mobile now has just over 50 million subscribers using its network.
Revenues down from previous year, quarter, second half of year 'will remain a challenge'
Results for Samsung's second quarter of the 2014 fiscal year were posted today, showing declining revenues for the third straight quarter. Samsung warned investors at the beginning of the month that it expected a drop of 24 percent from 2013, missing projections in the area of $1 billion. The second quarter, which ended June 30, saw net income of only $6.1 billion (6.25 trillion won).
Analyst talks of iOS 'everywhere,' Cook's bold strategies
Six weeks after it rebutted a New York Times editorial that cast doubt on Apple's CEO, investment firm UBS has again praised Tim Cook's vision and leadership of Apple in a note to clients. In particular, analyst Steven Milunovich was taken with Cook's plans to expand iOS to automotive, gym, medical and home markets through its CarPlay, HealthKit and HomeKit initiatives, as well as the continuing growth of the entire OS X and iOS eco-systems, which the company refers to as "the Applesphere."
Struggling chain attempting to reinvent itself to survive the modern market
In an interview, electronics retailer Best Buy CEO Hubert Joly believes that the day of the tablet may already be over. Citing observations at his stores, the CEO claims that the company has "actually had a revival of the PC business at Best Buy," giving credit to Microsoft for discontinuation of Windows XP, and to Apple for continuing to innovate for consumers.
Revenues up more than $170 million compared to last year, posts $145 million loss
Twitter released its quarterly results today, showing a strong surge in business during the second quarter of its 2014 fiscal year. The company posted revenues of $312 million, compared to only $139 million during the year-ago quarter. The increase represents a 129 percent increase year-over-year. The social media company also saw an increase in users compared to the results from the previous year.
Company turnaround underway, says CEO in wake of deal
At its annual BlackBerry summit, the beleagured smartphone manufacturer has announced a deal that will see it acquire Germany's Secusmart to enhance its own security offerings. BlackBerry CEO John Chen said of the deal that it "creates that much more distance between [BlackBerry] and competitors" in the battle for corporate and governmental business share.
Investigation centered on technical issues, bank actions marring launch
As part of Facebook's quarterly financial disclosures, the social networking giant reported that the US Securities and Exchange Commission (SEC) has ended its investigation involving Facebook conduct surrounding the initial public offering in 2013. In its quarterly report, Facebook claims that the SEC ""notified us that it had terminated its inquiry and that no enforcement action had been recommended." Shareholder lawsuits against Facebook and affiliated banks are unaffected by the disclosure.
Total of $28B spent in fiscal 2014, average price $85 per share
Regulatory filings with the SEC have revealed that Apple spent another $5 billion during the June quarter as part of its share-repurchase program to retire an additional 58 million shares of stock at an average (split-adjusted) price of $85.23 per share, still well below the current trading average, and about the same price per share as well CEO Tim Cook first announced the buyback plan just over two years ago. The recent expenditure is less aggressive than seen in quarters where the share price was lower, signalling reduced buyback activity.
Apple now on the hook in another patent infringement case
In a court filing discovered today, audio equipment maker Bose is suing headphone rival Beats over noise cancellation headphone technology. Bose claims that Beats has knowingly infringed on "50 years of signficant investment in the research, development, engineering, and design" on the technology, with the Beats lineup for sale now using "36 US patents and applications" that Bose now owns or has filed for.
Company ramps up ahead of fall launches
Data from Apple's 10-Q filing with the SEC indicates that Apple spent $15.4 billion on manufacturing and components during the June quarter, a 22 percent increase quarter-over-quarter, notes Morgan Stanley analyst Katy Huberty. Apple put another $5.6 billion towards other commitments including advertising, R&D, Internet/telecommunications, and product tooling/manufacturing equipment. Combined the company's commitments totaled $21 billion, a 36 percent increase quarter-over-quarter, and 46 percent year-over year. The former is said to be the highest sequential growth for any Apple Q3 since the build up to the iPhone's launch in the summer of 2007.
Growing losses troubling investors, stock down six percent in an hour
Amazon today announced financial results for its second quarter. The company reports that net sales increased 23 percent to $19.34 billion in the second quarter, compared with $15.70 billion in second quarter 2013. However, despite the increase in sales, the company's net loss was $126 million in the second quarter, or $0.27 per diluted share, compared with a net loss of $7 million, or $0.02 per diluted share, in second quarter 2013.
Expects 'busy fall' with new iPhone, long-awaited 'iWatch' debuts
Despite some disappointments in Apple's latest quarterly earnings report, analysts appear to be satisfied that the company's overall financial picture is in order, particularly on the strength of rising margins and strong developing market sales. The stock closed up $2.47 on Tuesday (an increase of 2.61 percent) to close at $97.19, not far from its 52-week high. On Tuesday, RBC Capital Markets raised its year-end target price to $110, joining Barclays and Morgan Stanley in predicting the company would hit an all-time high this year.
Revenues beat industry projections and earnings per share, user counts increase
Facebook released its quarterly earnings for the second quarter of 2014, showing a large increase year-over-year. Revenues topped out at $2.9 billion, a staggering $1.1 billion, or 61 percent, increase from 2013. The revenue jump is due largely to advertising revenue and an increase in daily and monthly active users.
Company still rolling in cash, pulls down $5.6 billion in income
Communications giant AT&T has released its quarterly earnings report for its second quarter of the fiscal year. AT&T's consolidated revenues totaled $32.6 billion, up 1.6 percent versus the year-earlier period. Compared with results for the second quarter of 2013, operating expenses were $27.0 billion versus $26.0 billion; operating income was $5.6 billion versus $6.1 billion; and operating income margin was 17.2 percent versus 19.1 percent.
Amount up $425M year-over-year
Apple's spending on research and development jumped 36 percent year-over-year in the June quarter to $1.6 billion, according to the company's latest 8-K filing with the SEC. That brings the company's R&D totals for fiscal 2014 so far to $4.36 billion, 32 percent more than it spent during the same timeframe in 2013. The pacing of R&D has also accelerated throughout 2014.
Company shifting to Bluetooth, Wi-Gig, other technologies
After lackluster quarterly financial results, chip developer Broadcom is looking to exit the cellular baseband manufacture business. As a result of the business shift, the company is looking to lay off 20 percent of its workforce. Approximately 2,500 employees will be affected by the layoffs, according to the company's latest US Securities and Exchange Commission (SEC) filing.
Most remain undisclosed, but details on Beats buyout rationale emerge
Apple CEO Tim Cook disclosed during Tuesday's conference call with analysts that Apple had acquired 30 companies and/or their talent over the course of the past nine months, back to the beginning of the fiscal year which began last October. Of these, less than half have been publicly revealed -- though a few of the higher-profile buyouts, such as the record-setting Beats Electronics and Music deal, have made headlines. On the topic of the latter company, Cook shared a bit more detail on the thinking behind it.
Colorful iPhone model continues to be among best-selling smartphones
One of the most surprising things analysts heard on Tuesday in Apple's quarterly earnings conference call that was low on surprises was that year-over-year growth of the iPhone 5c is strong -- so strong, in fact, that its share gain outpaced that of its previous-year rival in the mid-tier "slot" in Apple's lineup, the iPhone 4S, at the same point in the previous cycle. In fact, Apple CEO Tim Cook told analysts that it even outpaced the growth rate of the iPhone 5s vs the iPhone 5, and the 4S versus the iPhone 4, each in their respective tiers.
Larger markets waiting on next iPad, sales in developing markets are way up
For the second time in as many quarters, Tim Cook has had to explain away drops in iPad sales. Last quarter, the iPad saw a 16 percent drop from the year-ago quarter, but Cook detailed a credible explanation that channel inventory from the holiday season had overstuffed retailers and that the drop was actually only three percent because of that, which fell within normal ranges. This time, iPad sales were down about 9.2 percent, which Cook largely blamed on anticipation for the next iPad coming this fall.
iPod continues terminal decline
In addition to its official announcement, Apple has also posted a detailed breakdown of its fiscal Q3 results. "Greater China" -- including Taiwan and Hong Kong -- continued to lead the charge regionally, with its revenue increasing 28 percent year-over-year to $5.935 billion. Europe and Asia-Pacific each advanced 6 percent, to $8.091 billion and $2.161 billion, respectively. Apple's most important market, the Americas, rose 1 percent to $14.577 billion. Global retail numbers were up 1 percent to $4.104 billion.
iPhone and Mac units rise, iPad takes a hit
Apple revenues rose 6 percent year-over-year to $37.43 billion in its third fiscal quarter, which ended in June, the company has announced. Profits were up 12.3 percent to $7.75 billion, while earnings per share climbed from $1.07 to $1.28 when adjusted for the recent 7-to-1 stock split. Gross margin increased from 36.9 percent to 39.4 percent.
Company loses only 25,000 customers in the quarter versus 66,000 YAQ
Joining the chorus of quarterly earnings reports, Comcast has released its own figures. The company is reporting consolidated revenue for the second quarter increased 3.5 percent to $16.8 billion, with earnings per share at $0.76, a a 16.9 percent increase from the $0.65 reported in the second quarter of 2013.
Company planning mass European expansion in September
Netflix is the latest company to release its quarterly financial results. Touting expansion to 50 million subscribers in the US, the company reports $1.15 billion in revenue from streaming, adding 1.7 million subscribers in a quarter. Profit came in at $212 million, nearly triple that of the second quarter of 2013.
Despite lack of expansion, FiOS driving wired gains
Verizon Communications has released its second quarter 2014 financial results. The company reports its sixth consecutive quarter of double-digit percentage growth in operating income and earnings per share, with $31.5 billion in revenue, a 5.7 percent increase from a year ago, with income of $7.7 billion, a 17.2 percent increase from the year-ago quarter.
Amateurs more optimistic than professionals
In tomorrow's results call, Apple may beat official revenue guidance for its fiscal third quarter, according to a consensus forecast compiled by Fortune. The magazine polled over two dozen analysts, and came up with a consensus of $38.4 billion, topping the $36-38 billion Apple predicted when revealing its Q2 results. The poll group was split between 15 professionals and 12 amateurs, of which the latter are said to be the most optimistic.
Roughly 14.43 million iPads, 35.88 million iPhones expected on average
With just a few days to go before the actual sales figures are revealed, analysts are at a loss to come up with a strong consensus on how many iPhones and iPads the company actually sold in the calendar second quarter, which ended June 30 (Apple refers to this as fiscal Q3). The iPad figures are even more befuddled, since last quarter's drop in iPad sales -- 16 percent year-over-year -- was explained by CEO Tim Cook as changing inventory numbers rather than an actual drop.
Citing lack of demand, devices start coming off retailer shelves
Lenovo has ceased sales of sub-10-inch Windows-based tablets in the US. The cessation is not from a manufacturer's defect or recall, but because the company is seeing little demand for the devices in the North American market. Devices affected by the pullout are the company's ThinkPad 8, and the smaller size of the Miix 2 tablet.
Susan Wagner is second woman, first financial guru to join Apple BOD
On Thursday, Apple announced the retirement of its longest-serving board member, Intuit Chairman Bill Campbell, and his replacement: global investment firm BlackRock co-founder Susan Wagner. Campbell originally joined Apple as VP of Marketing in 1983 under then-CEO John Sculley, eventually becoming the head of the Claris software division. He was appointed to the Board of Directors by Steve Jobs upon the latter's return in 1997, and has served on the board since then.
Company expects recovery by the end of the fiscal year
Chip manufacturer AMD today announced revenue for the second quarter of 2014. The company posted revenue of $1.44 billion, with operating income of $63 million. However, as expected, the company still posted a net loss of $36 million, or $0.05 per share. The company remains affected by the soft computing market, but is expected to have profitability by the end of the fiscal year.