26Jan

Motorola Mobility Closes Out Q4 2011 With An $80 Million Net Loss

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Motorola Mobility released their fourth quarter and year-end financials today, and now we can see why they made it a point earlier this month to downplay analyst expectations. The company’s new figures reveal that while Motorola raked in $3.4 billion in Q4 2011, they also incurred a net loss of $80 million.

Things don’t look much more promising when we shift our attention to their mobile offerings. Motorola’s myriad mobile devices accounted for the lion’s share of their revenue — $2.5 billion to be precise, a year-over-year increase of 5%.

Still, despite pushing out devices like the Droid RAZR and their XYBOARD tablet in time for the holidays, Motorola didn’t see a notable jump over their performance last quarter when during which their mobile devices netted $2.4 billion in revenue.

Also interesting to see is how Motorola stacks up to their mobile competitors when it comes to device shipments. Motorola announced earlier this month that they shipped 10.5 million mobile devices in Q4 2011, down from 11.3 million back in Q4 2010. Of those 10.5 million units shipped 5.3 million were smartphones, which doesn’t sound too shabby until you realize that Android-loving rival Samsung sold 35 million smartphones.

Taiwan-based HTC would probably be the closest in terms of performance — while they didn’t release specific device numbers along with their unaudited quarterly results, Bloomberg’s estimates pegged them at roughly 10 million devices shipped. Coincidentally, both Motorola and HTC have made known their intentions to streamline their smartphone portfolios going forward, and I’m looking forward to seeing how their earnings change as a result.

Stepping back to look at their yearly performance, we find that Motorola Mobility shipped a grand total of 42.4 million mobile devices, which includes 18.7 million smartphones and 1 million tablets. Those in tandem with their (less interesting) home segment offerings led Motorola to pick up net revenues of $13.1 billion, albeit with a net loss of $249 million. Of course, Motorola Mobility’s on the precipice of some drastic change, what with their pending acquisition by Google still churning along. With the transaction expected to finish early this year, we could be looking at a completely different Motorola before too long.



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26Jan

AT&T Set Sales Records For Both iPhone And Android Devices In Q4 2011

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AT&T this morning released its earnings for the fourth quarter of 2011. Consolidated revenues clocked in at $32.5 billion, up 3.6 percent compared to the year-earlier quarter. They recorded a huge net loss for Q4 2011: $6.7 billion, or $1.12 per diluted share.

Zooming in on smartphone sales, it’s worth noting that AT&T delivered its best-ever quarter to date, hands down.

In the fourth quarter of 2011, the company says it sold 9.4 million smartphones, nearly double the number sold in the third quarter and 50 percent more than the previous quarterly record.

This also led to 19.4 percent growth in wireless data revenues, the company said.

During the quarter, more than 7.6 million iPhones were activated, the “majority of which” were iPhone 4S, and AT&T says more than twice as many Android smartphones were sold last quarter compared to the fourth quarter of 2010. AT&T also said it sold 311,000 tablets in Q4 2011.



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26Jan

AT&T Set Sales Records For Both iPhone And Android Devices In Q4 2011

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AT&T this morning released its earnings for the fourth quarter of 2011. Consolidated revenues clocked in at $32.5 billion, up 3.6 percent compared to the year-earlier quarter. They recorded a huge net loss for Q4 2011: $6.7 billion, or $1.12 per diluted share.

Zooming in on smartphone sales, it’s worth noting that AT&T delivered its best-ever quarter to date, hands down.

In the fourth quarter of 2011, the company says it sold 9.4 million smartphones, nearly double the number sold in the third quarter and 50 percent more than the previous quarterly record.

This also led to 19.4 percent growth in wireless data revenues, the company said.

During the quarter, more than 7.6 million iPhones were activated, the “majority of which” were iPhone 4S, and AT&T says more than twice as many Android smartphones were sold last quarter compared to the fourth quarter of 2010. AT&T also said it sold 311,000 tablets in Q4 2011.



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24Jan

Verizon Posts A Net Loss Of $2.02B In Q4 2011

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Ever since the AT&T/T-Mobile saga came to a grinding halt, you’d think that Verizon would be enjoying its reign in peace. But it would seem that the company has posted a net loss of $2.02 billion in the fourth quarter of 2011. At the same time a year earlier, Verizon was seeing a profit of $2.64 billion.

According to Bloomberg, the loss can be attributed to a pension charge and higher subsidy costs for rising iPhone sales. But there have been gains, as well. Verizon lured in 1.2 million new subscribers — probably thanks in large part to the iPhone — and hopes that the high subsidy costs will eventually be paid off by consumers as they spend on calling and data.

Bloomberg enlisted the help of James Ratcliffe, an analyst at Barclays Capital in New York, who said that “the average smartphone customer will spend about $2,000 over the two-year contract. If the subsidy is $400, you’re still getting $1,600, and that’s very cash-flow positive.” It would appear that smartphones are, indeed, where it’s at for Verizon, as the company reported that 44 percent of its customer base is now using a smartphone.

The carrier announced a total revenue of $18.3 billion for the quarter, representing a 13 percent year-over-year increase. Not surprisingly, data played a major role in bringing in the big bucks for ol’ Big Red.

In fact, 42 percent of all revenue for the quarter was made up of the $6.3 billion in data revenue, up 19.2 percent from the same time last year.



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19Jan

Pulse Jumped From 1 Million To 11 Million Downloads In 2011; Now Seeing Download Every 2 Seconds

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In November, Amazon began shipping its new Kindle. At the time, even though reactions were varied, though Amazon hoped for the best, as some projected it would sell as many as 5 million by the end of 2011. Though the indications are that it didn’t get there. However, the media hype and early Kindle sales have still been a boon for a young startup that you’re probably by now familiar with: Pulse.

At launch in November, the suped up RSS-style news reader tailored for mobile devices found itself the unofficial news reader for the Kindle Fire. While Amazon never officially endorsed them as such, Pulse was one of a handful of native apps to appear on the device’s homescreen right out of the box. Of course, Amazon keeps their cards close to their chest, like Apple, and Pulse Co-founder Akshay Kothari tells me that the team didn’t know Amazon had chosen them as such until a few weeks before the device was shipped.

In fact, the Kindle Fire’s sales saw Pulse rack up 1.1 million downloads on Christmas Day alone. Of course, this is aided by the fact that the newsreader app has been both lucky and fleet with pushing designs early on emerging platforms. Steve Jobs mentioned Pulse at the iPad launch event, and although Pulse was subsequently pulled, it started a trend. The app went on to see a lot of adoption on the iPad, and caught fire on Honeycomb (as much as an app can), and has leveraged that early success to secure such optimal placement on the Kindle.

Kothari today shared with TechCrunch that over the course of 2011, Pulse went from 1 million downloads to over 11 million, and are currently averaging approximately one download every two seconds, and 1.5 million every month. Of course, downloads are one thing, active users another. Pulse isn’t ready to share active users numbers, presumably because they aren’t particularly close to the downloads statistics, but people are using it. For example, in total, users have read a total of 1.39 billion stories through Pulse, and shared 9.8 million stories. As a note of tribute to Steve Jobs, 812K stories were read about the Apple co-founder on October 6th.

The app has seen high adoption for several reasons, and part of that is hanks to its touch-based interface (easy swiping/scrolling), clean design, and visual appeal. But, it’s also the fact that it’s been able to strike a number of strategic partnerships with big media outlets, like ESPN, and with deal sites like Groupon. (Pulse now has over 250 publishing partners.)

And, as a word to wise entrepreneurs, Kothari tells me that the success has also been attributable to the fact that the team is on all of the major platforms, iPhone, iPad, Android, Android tablets, Nook, Amazon, Windows Phone 7, etc. Focusing on building apps for each OS and mobile experience is important, and giving readers the ability to sync their Pulse apps across platforms was a big move for Pulse. Kothari says that the key, while difficult to always implement effectively, is to maintain a consistency of brand across mobile platforms, while optimizing apps for each of their particular experiences.

Like others before, he said that the experience building for each is different, but that iOS makes it easy to prototype different looks, there’s a lack of fragmentation, only one screensize for the iPad and iPhone, and they have great tools. The benefit to Android is scale and the quick turnaround cycle. “Mobile hasn’t seen a great A/B testing formula,” Kothari says, but Android gets the closest. Amazon, on the other hand, has done a pretty good job of making it easy for Android developers to build apps for their modified mobile OS. Windows Phone? Well, that remains to be seen.

Pulse has seen some great competition from Flud, which hasn’t seen nearly the same scale and adoption Pulse has managed thanks to its great distribution plays, but it’s trying to push forward the socialization (so to speak) of the newsreading experience.

Because it was a fast-paced, hockey-stick-growth type year for Pulse, the focus was mainly on scaling. But the co-founder said that they’re getting to a point where they feel comfortable with their progress there and are ready to focus more on the social aspects of news, as well as productizing their experience. And, hey, with Streamglider, Taptu, and others, there’s plenty of competition to go around.

They’ve been able to get pretty far with their Palo Alto-based team of 20, but they’re ramping up in their hiring thanks to that $9 million round in June in hopes of doing more with the reams of data they’ve been collecting around what people are reading. There’s a lot of potential around this, just as we’ve seen publishing companies launching news apps on Facebook to get in the news feed, Pulse is looking for the best ways to encourage social news sharing. And as something that’s already, in my opinion, social, there’s plenty of opportunity.

For more, check out Pulse’s stats in their infographic below:



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