Articles about Margins

Monty Python Wafer Thin Mints

Secretive Chinese smartmobe colossus Xiaomi is on WAFER thin margins

Chinese smartphone giant Xiaomi is operating on the thinnest of margins to keep its handset prices low, according to a filing with the Shenzhen Stock Exchange. The Chinese phone-maker, that’s creeping up on Western manufacturers, made a profit of $56.2m on $4.3bn in revenue last year. That gives the firm operating margins of …

Ingram Micro: Damn you Europe for our ghastly margins

Weaker margins in Europe due to forex losses and cut-throat retail pricing was the only major blip in an otherwise decent end to the calendar 2014 for Ingram Micro. It was not a vintage year though. Sales in Q4 bounced 18 per cent to $13.95bn: Technology and Other Solutions grew ten per cent to $11.2bn and Mobility shot up 60 …
Paul Kunert, 27 Feb 2015

Crap turnover, sucky margins: TV is a 'terrible business' – Steve Jobs

Fanbois hoping to upgrade their Apple streaming set-top box to a fully fledged Apple TV set will have been disheartened by revelations in a new book claiming Steve Jobs did not support building an iTelly. According to former WSJ journo Yukari Iwatani Kane's book Haunted Empire: Apple After Steve Jobs, the fruity führer …
Jasper Hamill, 17 Mar 2014

Apple beats revenue estimates but margins are falling

Apple has beaten some of the gloomier analyst expectations in its second quarter's results filing, with revenues of $43.6bn for the quarter generating $9.5bn in profits. But margins are falling and the company warned that next quarter it may clear only $33.5bn to $35.5bn in revenues – its biggest fall in a decade. The company …
Iain Thomson, 23 Apr 2013
Unisys sets LinuxWorld alight

Unisys looks to ‘streamline’ as losses increase, sales fall

Losses at mainframe maker Unisys plunged deeper into the red in the company's first quarter of 2015, falling a further $10 million (£6.6 million) to $27.4 million (£18.1 million). First-quarter 2015 sales fell 5 per cent to $721 million (£476 million), when compared with the previous year. The company hopes to makes savings of …
Kat Hall, 24 Apr 2015
channel

Bytes' NHS deal loss hits revs – but biz margins rise

Bytes Technology Group's (BTG) top line took a hammering in fiscal 2012 ended February from the loss of a Microsoft Enterprise Agreement with the NHS – but efforts to push up gross margins boosted the bottom line. The Surrey-based reseller saw sales fall 16 per cent to £125m for the 12 months as two NHS true-ups in the previous …
Paul Kunert, 16 Apr 2012
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Hungry Advanced Computer Software gets swallowed for £725m

Acquisition-hungry Advanced Computer Software (ACS) has itself been acquired by private equity firm Vista for £725m. Vin Murria, chief executive of the healthcare and biz management software and services firm, said the deal would help ACS move to its "next stage of its growth". She said: "ACS' value has grown from £32m to £725m …
Kat Hall, 25 Nov 2014

$17,000 Apple Watch: Pointless bling, right? HA! You're WRONG

Comment What's the point of Apple's $17,000 Christometer then? Apart from, you know, vulgar money? There's been a certain amount of quiet coughing and choking among the fanbois over the new Apple Watch Edition's Christometer's tag of $17,000 at the top end. That's a whole heap of Benjamins for a wrist computer, most especially as the …
Tim Worstall, 12 Mar 2015
Sidewalk mobile phone lane in China

Xiaomi: It really ISN'T a biz-miracle idiot tax like Apple

Worstall on Wednesday The lads over at Business Insider seem to be getting a little over-excited about Xiaomi's latest fund raising exercise, claiming in their headline that it's the Apple of China. Well, no, not really, Apple is the Apple of China. Making cute kit and selling it in volume isn't the definitive point about Apple itself so a company …
Tim Worstall, 24 Dec 2014
Chart

Blighty's oldest tech distie feels a little punchy again

Death, taxes and Northamber’s continued sales slide once seemed three certainties in life, but no more – the UK’s oldest tech distie has grown for the first time in years and isn't losing nearly as much cash. It could well be that the new management strategy, led by commercial director Alex Phillips, son of chairman David, is …
Paul Kunert, 12 Mar 2015

BT bemoans 'misconceived' SUPERFAST broadband regs

Ofcom is attempting to clip BT’s financial wings by proposing to regulate the margins it banks from superfast broadband sales to consumers, essentially to prevent the firm from future profiteering and elbowing rivals out of the market. The Brit telco monopoly is the largest provider of fibre broadband services over its network …
Paul Kunert, 15 Jan 2015
sap security vulnerabilities

Cloud-engorged SAP's profits nosedive by a QUARTER

Profit plunged by 23 per cent to €413m (£296m) at Teutonic wannabe cloud-purveyor SAP for its first quarter as the company attempts to move away from its traditional on-premise software products. Revenue increased 22 per cent to €4.5bn (£3.2bn), compared with the same period last year. Cloud subscriptions and support revenue …
Kat Hall, 21 Apr 2015
BBC Testcard

Vodafone Pay TV launch rumoured for November

Vodafone is gearing up to offer a pay TV service, the latest global telco to move into the four-play arena, and the scuttlebutt is that consumer offerings will go on sale in November. Vodafone has offered broadband before but sold the business to BT’s Plusnet in 2007. The mobile phone giant announced that it would re-enter the …
Simon Rockman, 16 Mar 2015
Huawei HQ

Huawei bellows big revenue jump thanks to brisk 2014 phone sales

Huawei – which was backed by Britain last week despite repeated claims that the Chinese company's network kit could endanger national security – saw a 33 per cent leap in net profit for 2014. The privately held, employee-owned telecoms giant reported its full-year results this morning, when the firm's rotating CEO Ken Hu …
Kelly Fiveash, 31 Mar 2015
channel

Ultrabook prices to fall as manufacturers slash margins

Manufacturers are cutting their margins to the bone, and getting a subsidy from Intel, in an effort to make ultrabooks more affordable. Acer, Asustek Computer and Toshiba may be able to put out hardware below the critical $1,000 mark, unnamed sources told DigiTimes, and by 2012 prices could drop by up to 10 per cent. Intel is …
Iain Thomson, 30 Nov 2011
NetSuite CEO Zach Nelson

Sorry about that profit, says NetSuite, our costs should be higher

NetSuite CEO Zach Nelson has attributed last week's estimates-busting results are partly due to enthusiasm for cloudy software, but also partly due to difficulties finding people to hire. The company hauled in US$143.7 million for the quarter, a small matter of 34 per cent more than the corresponding quarter in 2013. But the …
Simon Sharwood, 28 Oct 2014
paper cut-out men holding hands in linked semi-circle

Legal biz Irwin Mitchell outsources majority of IT to Esteem

Law firm Irwin Mitchell is to outsource IT operations to Esteem from Monday, with the “majority” of staff expected to be TUPEd across, although some are refusing to relocate 200 miles to the Woking call centre The desktop support function was already contracted to Esteem at the end of 2012 for £1.7m with 15 people joining the …
Paul Kunert, 13 Apr 2015

Superfish: Lenovo ditches adware, but that doesn't fix SSL megavuln – researcher

Lenovo is attempting to defuse controversy over its pre-installed Superfish crapware – which appears to have run man-in-the-middle attacks against consumers in order to sling ads – by saying it has discontinued use of the visual-recognition technology on new laptops and promising to review outstanding concerns. Superfish …
John Leyden, 19 Feb 2015

Seagate belches, chomps down another greenback burger

Seagate’s second quarter revenues for 2015 rose 4.8 per cent over the year to $3.7bn while profits more than doubled to $933m, up from $428m a year ago. Last quarter’s revenues were higher, at $3.8bn, yet profits were $381m. This meant they made up just 10.1 per cent of its revenues compared to 25.2 per cent profit in the latest …
Chris Mellor, 26 Jan 2015
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Scalable storage outfit Imation SLIDES BACK after recovery

Analysis Formidably troubled storage outfit Imation, the company dragged down by delayed exits from the tape and optical media markets, has recorded a third quarter loss 76 per cent worse than last year on revenues just nine per cent down on the year. The third 2014 quarter saw revenues of $175m, compared to $178.6m a quarter ago and $ …
Chris Mellor, 04 Nov 2014
Smartphones

Secretive Chinese smartphone maker Xiaomi gets TALKY over HUGE sales

Chinese tech giant Xiaomi racked up 74.3bn yuan ($11.97bn) in pre-tax revenue last year, the company's president Bin Lin said today. The vendor apparently had a mega 135 per cent growth spurt in 2014, after it sold more than 61 million smartphones during the 12-month period. Xiaomi's co-founder didn't offer any details on …
Team Register, 04 Jan 2015

Yahoo! sees! profit! and! shares! fall! as! earnings! missed! - save! us! Japan!

A first quarter earnings report from Yahoo! revealed the company had missed its revenue forecast again, prompting a share price fall for the once great tech company, and increased talk of stake sales. Results for the quarter ended 31 March 2015 showed an “encouraging revenue growth of eight per cent, with display revenue growing …
Apple Watch lineup

Apple Watch shipments: Pick a number, double it. Hey, it worked for them

Blogger and analyst Carl Howe estimates Apple has planned an initial production run of 3.1 million sparkling wrist jobs, and forecasts that the “Apple Watch product line will become its most profitable ever, with gross margins exceeding 60 per cent". In a detailed blog post, Howe does admit however that "in truth, projections …
Simon Rockman, 21 Apr 2015

Sales slip at fine-hit CSC after firm escapes from the NHS

Sales at US computer giant CSC dropped 8.7 per cent to $2.95bn (£1.9bn) for its third quarter - around $150m (£98.6m) below what the company had hoped. The company also recorded an income loss of $313m (£206m) for the third quarter, which was affected by pre-tax pension-related charges of $462m (£303m) and a $195m (£128m) charge …
Kat Hall, 10 Feb 2015
management cloud8

Amazon joins Dropbox clones, hints at cloud storage margins

Amazon.com has become the latest outfit to decide copying Dropbox is a fine idea, further cloudifying its Cloud Drive with a desktop client that does the usual store 'n' synch between multiple devices while also offering some interesting insights into cloud economics. The nominally-profitable online retailer has operated Cloud …
Simon Sharwood, 02 Apr 2013
Picture by Afonso Lima

Huawei: Phone sales helped fatten our bottom line in 2014

Phone sales helped network equipment giant Huawei to bank 20 per cent more revenue in 2014 than the previous year, the company said today in an earnings guidance. The Chinese company estimates sales for the 12 months to come in at between ¥287-289bn (£30.3bn to £30.9bn) when the final numbers for calendar ’14 are reported in …
Team Register, 13 Jan 2015
Nokia Lumia 830 group

What's that, Microsoft? Yep, a Lumia and Surface SALES BOOM

Microsoft shipped a record number of Lumia smartphones in the final quarter of calendar year 2014, as Surface revenue finally started to make an impression. Microsoft reported that 10.5 million Lumias shipped, the most in a quarter, on the strength of low-cost devices. However, to put that in perspective, Samsung sold over 78 …
Andrew Orlowski, 27 Jan 2015
management cio1

Avnet TS names vet Zammit as global el presidente

Patrick Zammit, the latest exec to grab global control of Avnet Technology Solutions (ATS), will be close at hand from his Brussels base to mastermind a sustained growth plan in EMEA, something that continues to elude the firm. A former senior auditor at Arthur Anderson - like many beanies now working in the channel - Zammit …
Paul Kunert, 06 Jan 2015
Cat yawning

Bankers don't just blow cash on bonuses, they also spaff ££££s on IT

The banking industry - on average - coughed the highest margins for technology in 2013, doubtless indicating that champagne-guzzling fatcats drunk on bonuses were the ones in charge of purchasing. A survey of 200 procurement and ICT managers in 12 sectors with annual budgets over £50k and based on some 150,000 products showed …
Paul Kunert, 28 Apr 2014

Microsoft's 'loss leader' Office 365 pricing strategy? NO THANKS

Microsoft’s advice to its channel partners to sell Office 365 as a loss leader to lure in small and medium sized customers is not something that sits well with suppliers, at least not in Blighty. Thomas Hansen, worldwide veep for Microsoft's Small and Medium Business organisation told attendees at the Asian Canalys Channels …
Paul Kunert, 07 Nov 2014

Sales down at UK's oldest tech distie: Northamber losses widen in fiscal '14

The prognosis for Northamber’s future is brighter, according to its colourful chairman, despite widening losses and revenues remaining in free fall for fiscal ’14 ended June. The AIM-listed tech distie - the oldest in Blighty - reported prelim sales of £62.8m, down a whopping 19 per cent year-on-year, and a loss from operations …
Paul Kunert, 30 Oct 2014
No Sale

PwC: Forget margin, tech biz, HUSTLE for that SALE

The phrase "turnover is vanity, profit is sanity" apparently does not apply to the tech sector, with PwC advising companies this year to focus on revenue growth above margins and "yield maximum shareholder value". According to the report 2015 Technology Industry Trends this is particularly important in a "volatile market", which …
Kat Hall, 27 Jan 2015
IBM Dynamic Buy

IBM continues fanboi courtship with fresh crop of iOS apps

IBM has released a trio of enterprise applications for iOS devices, as part of its Businesslab partnership with Apple. Big Blue's three new iOS apps offer tools for customer service tasks and remote working, two areas that IBM and Apple cited as keys last year when they announced their joint effort to put IBM business software …
Shaun Nichols, 03 Mar 2015
The Register breaking news

Fat margins squeeze Apple against Android

Open ... and Shut There are a million ways to over-analyse iOS versus Android market share, but one thing is often overlooked: Apple's high-margin strategy depends upon buying customers through subsidies, and may not be able to keep pace with Android's low-cost model over time. Google's Android growth - 250 per cent in 2011 - is particularly …
Matt Asay, 28 Feb 2012
xiaomi Mi Wi-Fi router

'Apple of China' Xiaomi: Yep, we HAVE just bagged $1.1 BEELLION

Top Chinese mobile phone manufacturer Xiaomi has confirmed reports that it has raised $1.1bn to fund its plans for world domination. In a Facebook Post, president and co-founder Bin Lin said: We just completed the latest round of funding last week, raising US$1.1 billion at valuation of US$45 billion. Investors include All- …
Simon Rockman, 29 Dec 2014

Phoenix IT Group 'trading comfortably in line with forecasts'

It is almost a year since Steve Vaughan grabbed control of Phoenix IT Group, and the once-troubled tech services outfit no longer seems so ... well, troubled. The LSE-listed Northampton company issued an interim today to say group trading is “comfortably in line with market profit expectations”, and talked up a number of …
Paul Kunert, 24 Feb 2015
Huawei Campus Shenzhen Bantian

Huawei? Apple and Samsung's worst nightmare, pal

Huawei claims to have banked over $11bn in smartphone revenue in 2014 despite falling short of its volume prediction. Consumer chief Richard Yu says the Chinese giant shifted 75 million units in the year, a little short of the 80 million it had predicted - but still up 40 per cent from 2013, the WSJ reports. Three of the top …
Andrew Orlowski, 02 Jan 2015

What just went down on Intel for three months? Er, PC and mobile chips

Intel announced its earnings based on its new financial reporting structure for the first time on Tuesday, but despite having lumped its ailing Mobile & Communications unit in with its PC Client business, there was no hiding that the three months ended on March 28 were a tough quarter for Chipzilla. Total revenue for the first …
Neil McAllister, 14 Apr 2015
management consumerisation

Ingram UK basks in rosy glow of ... successful cost-cutting

Throwing costs overboard, smaller interest repayments and walking away from lower-margin business beautified Ingram Micro UK’s bottom line in calendar ’13, as its latest Companies House filing reveals. The Milton Keynes-based biz reported turnover of £968.5m, up 2.15 per cent, or 1.4 per cent when inter-group trade (£36.7m) was …
Paul Kunert, 14 Oct 2014
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Systemax CEO closes 31 retail stores in US as losses widen

Systemax has finally shuttered the majority of its consumer tech stores in North America after once again enduring weak holiday season sales and reporting yet another year of losses. The New York-listed reseller grew consolidated sales 4.4 per cent to $912.9m but it was the B2B side of the house and not retail that contributed …
Paul Kunert, 11 Mar 2015
Allows signals to reack those difficult places

Post-modem Ericsson wobbles thanks to flat sales and falling profits

Ericsson's flat sales last year were the result of its disappointing fourth quarter, especially in America, its latest financial results show. The Swedish company is still the biggest supplier of mobile network infrastructure in the world, and in the fourth quarter it saw strong sales growth in the Middle East, Asia and Europe …
Simon Rockman, 27 Jan 2015
Pretty woman looks miffed. Copyright: Danil Nevsky via Shutterstock http://www.shutterstock.com/pic.mhtml?id=149618984&src=id

Cheer up UK mobile grumblers. It's about to get even pricier

You may not think being a mobile phone customer in Britain is much fun, what with rural Not Spots, the world's most irritating advertising campaigns*, and LTE arriving later (and rolling out slower) than anywhere else. Readers are quick to complain. But you actually get a better deal than you think. So enjoy it while you can, …
Andrew Orlowski, 21 Jan 2015

Revenue drops at IT giant CSC... 'Good progress' says chief

Revenue at CSC fell by 3.4 per cent to $3.08bn for the firm's second quarter as "transformation efforts" took hold at the IT giant. Meanwhile, operating income fell 3.3 per cent compared to the same period last year – to $340m. Half-year net income fell by $112m to $307m, compared with the first six months of 2013. Sales were …
Kat Hall, 07 Nov 2014
LED

Samsung turns off lights on LEDs worldwide – except in South Korea

Samsung has decided to stop pushing its light emitting diode business outside of South Korea, despite reckoning it would be a growth area a few years ago. Like Philips, Sammy has realised that LED is not, after all, where it’s at, and it will be shutting the unit down overseas. Philips recently announced it would be spinning …

Big Blue weeps as another 8% slips off its storage scales

Comment When is Big Blue's storage slide going to end? IBM's latest quarterly and full year fiscal 2014 results show an unabated fall in storage hardware revenues, with an eight per cent annual decline to $864m in the fourth quarter of 2014. It's a huge number, but back in fiscal 2011 the same quarter recorded $1.2bn in storage hardware …
Chris Mellor, 22 Jan 2015

Lenovo: We now OWN IBM's shrinking Euro server biz. It's OURS!

Lenovo has finally got its hands on IBM’s volume server business in Europe months after the transaction closed in the rest of the world, and the comparatively hard work now begins in earnest. The transfer of the System X division to the new Chinese owners happened for most last October but was delayed in the fragmented European …
Paul Kunert, 06 Jan 2015

Outsourcery wins a £1.1m project present. Well, it is nearly Christmas

A FTSE100 company has handed ailing cloudy biz Outsourcery an early Crimbo gift by signing a three-year contract worth an estimated £1.1m to rip out its ageing telephony system in favour of "voice services". It's been one hell of a year for the Manchester-based software-as-a-service and online infrastructure seller, co-founded …
Paul Kunert, 05 Dec 2014

Huawei's turnover rockets upwards. Suck on that, US government

Execs at Chinese hardware maker Huawei are laughing all the way to the bank after reporting a healthy bounce in revenues and margins, despite being effectively blockaded by some governments in the West. The maker of telco kit, smartphones and enterprise networking gear today said that turnover for the first half of calendar '14 …
Paul Kunert, 21 Jul 2014

Latest Gartner wololo: Win Server 2003 refresh might be off the cards

Price hikes caused by the robust dollar could result in European server customers deferring purchases for at least the first half of this year, potentially translating into another period of stagnating revenues. With Microsoft ending support for Windows Server 2003 and Intel refreshing Xeon – which made vendors respond with …
Paul Kunert, 16 Mar 2015
arrow pointing up

Thought your dept was on budget this year? THINK AGAIN, matey

Tech buyers will likely need to revisit budget forecasts at the month's end with another price hike on commodity hardware to be pushed through by vendors in response to the relative appreciation of the dollar. Since last summer the US currency is up 15 per cent against the UK Pound (the impact on the Euro is even more pronounced …
Paul Kunert, 20 Apr 2015