Prevalence Of Smartphones And Tablets To Jeopardize Core Business Of Intel, Google And Microsoft

Must Read

Skeletons in the Closet? Google-Facebook Involved in Secret Online Advertising Deal

If you can’t beat ‘em, join ‘em. And when two titans happen to decide upon an alliance,...

A Majority of Web Professionals Prefer WordPress For Building Websites [STUDY]

The advancement in technology and network infrastructure has triggered an unprecedented competition among web professionals, who are willing to launch...

Smartphone Resale Value: Depreciation Is Surprising Enough [REPORT]

It's a tad cliché and true that smartphones have permeated every sphere of our life. The ceaseless...

Increasing demand of smartphones and Tablets has now become one of the biggest threats for the world’s iconic companies including Intel, Microsoft, Google and AMD–they are struggling to maintain consistent revenue torrent. On the contrast, Amazon and Apple have succeeded to generate dollars by leveraging on their mobile platforms.

At present, Apple is struggling to meet the demand of users; shipped 3 million new iPad within three days of its launch and also got 5 million preorders for iPhone 5 in the first weekend of its availability. Meanwhile, Amazon and eBay have made stronghold among consumers through mobile devices; Amazon is offering Kindle Fire Tablet at very affordable price, whereas about 800,000 shoppers already made their first-ever eBay purchase through their mobile devices.

Google’s Q3 2012 Earnings:

Advertisements

Google reportedly announced consolidated revenues of $14.10 billion in Q3 2012, showed a 45% Y/Y growth. Its GAAP operating income for Q3 of 2012 was $2.74 billion (19% of total revenue), down from $3.06 billion (31% of revenues) compare to the same quarter of the last year. Besides, GAAP net income in Q3 was $2.18 billion, up from $2.73 in the same Quarter of the last year.

On the other hand, Non-GAAP operating income in Q3 2012 was $3.80 billion (27% of all revenues), up from $3.63 billion (37% of revenues) in the same quarter a year back. Non-GAAP net income in Q3 2012 was $3.01 billion, down from $3.18 billion in Q3 2011.

Of course, Google operating and net income (GAAP and Non-GAAP) declined considerably Y/Y in Q3. Three main reasons that affected the search giant’s quarterly earnings were: First, Motorola’s acquisition added 20,000 more employees to Google that increased amortization expenses to $317MM from expected $197MM. Secondly, Motorola’s losses were huge compare to Google’s own. And More importantly, average cost per clicks (related to ads served on Google Sites and sites of network members) plummeted approximately 15% Y/Y in Q3–and about 3% Q/Q in Q3 2012.

The condition of Microsoft was almost similar of Google–a decreasing demands of PC in matured markets affected Microsoft’s core business.

Microsoft’s Q1 2013 Earnings:

Advertisements

Microsoft reported a GAAP revenue of $16.01 billion for Q1 of the fiscal 2013 (quarter ended September 30, 2012), down from $17.37 billion in same Quarter of the fiscal 2012. Its operating income (GAAP) also dropped to $5.30 billion in Q1 2013 compare to $7.2 billion of the same quarter of the last year. Diluted earnings per share for Q1 in 2013 was $0.53 per share.

We have already explained how Intel is uniformly losing its grip on market due to arrival of high-end smartphones and tablets day-by-day.

Intel’s Q3 2012 Earnings:

Intel reported a revenue of $13.5 billion (GAAP) for Q3 2012 that was almost flat compare to the previous quarter. In addition to this, its operating income was $3.8 billion–which was also flat compare to the previous quarter. Currently, Intel is struggling with less than 1% market share in smartphone segment.

Bottom Line:

It’s pretty clear that the conditions of the tech giants (Intel, Microsoft and Google) were not up to the mark in Q3 2012 (calendar). On the contrary, prevalence of smartphone and Tablets are uniformly clinching PC markets quarter-over-quarter. Like Google, Intel and Microsoft, AMD’s condition is also not well– it recently announced to cut 15% of its staffs (more than 1,600).

However, Google’s scenario is somehow different than others; Google’s Android is leading in smartphone segment in terms of shipments and it has already launched Nexus 7 Tablet in the market. Undoubtedly, Google could leverage on its integrated hardware and software ecosystem to make strong presence in the market and also, it will endeavor to frame an effective ad module for mobile platform to generate hoard of cash.

1 COMMENT

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

How Mobile Is Becoming A Catalyst Of Online Gambling Market Growth

The global online gambling market is now one of the biggest and it is expected to grow...

“Open Up Cambridge Analytica, It’s CBI At the Door!”

Among all the establishments ensnared in deplorable acts, Cambridge Analytica has steadily climbed the ladder of infamy. The roots of its malice...

Smartphone Resale Value: Depreciation Is Surprising Enough [REPORT]

It's a tad cliché and true that smartphones have permeated every sphere of our life. The ceaseless tech breakthroughs have led to...

Reliance-Future Deal Is Approved By SEBI But Biyani May Not Be Happy With It!

Despite Amazon trying its best to stick a fork between the Reliance-Future deal, the Indian market regulator SEBI has finally given the...

Skeletons in the Closet? Google-Facebook Involved in Secret Online Advertising Deal

If you can’t beat ‘em, join ‘em. And when two titans happen to decide upon an alliance, there are bound to be...

The Sudden Reappearance of Missing Jack Ma Leaves People Guessing About Many Things!

Jack Ma was preparing to publicly float Ant Group - what was billed to be the largest IPO in the world in...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This