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 …

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
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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
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
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
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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
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

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
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
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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
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

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 …

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
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
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Industry vet rocks up at Phoenix Software

Industry and distribution veteran Johnny Ellis has crossed into reseller land for the first time, rocking up as sales and marketing director at York-based Microsoft enterprise licensing partner Phoenix Software. Ellis, who only exited Arrow Enterprise Computing Solutions at the end of November, will also control the S&M …
Paul Kunert, 05 Dec 2014
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EU probe into Apple's taxes: It's NOT to do with double-Dutch-Irish anything sandwiches

As already reported here at El Reg, Apple is being investigated by the EU over its tax “deal” in Ireland. The interesting part of the whole story is that it has pretty much nothing at all to do with all of the things that people normally complain about concerning Apple's taxes. It isn't, for example, about the way that the …
Tim Worstall, 12 Jun 2014

SHOCK and AWS: The fall of Amazon's deflationary cloud

Analysis It's tough being a victim of your own business strategy, especially if you're Amazon founder and CEO Jeff Bezos. After spending twenty years applying a combination of price cuts, smart logistics, and ruthless efficiency to the publishing and music industries, Bezos' Amazon has grown into a vast company. But now the company's …
Jack Clark, 26 Jul 2014

RM: Killing our PC unit hit our top line, but our bottom line is pert

Murdering the PC building biz was always going to result in some top-line slippage for Brit specialist education tech supplier RM, but the move to shutter the production line hasn't hurt profits, quite the opposite. The Oxford-based biz today reported half-year numbers to 31 May with sales down more than 22 per cent to £92.1m …
Paul Kunert, 07 Jul 2014

Samsung to boot out Shin after Galaxy S5 tanks – report

Sales of the Galaxy S5 have so disappointed Samsung that it is reportedly looking at ousting mobile boss JK Shin and parachuting in appliances and telly tsar BK Yoon – who would oversee mobiles as well as his existing remit. Whichever way you cut it, the S5 has done badly:revenue, margins, year-on-year sales against the S4 or …
Simon Rockman, 25 Nov 2014
Angry woman on mobile

Quit drooling, fanbois - haven't you SEEN what the iPhone 6 costs?

Worstall on Wednesday Given that I'm writing this before the great unveil and you'll be reading it afterwards, there's much that could go wrong with my prognostications. Tim Cook could stand up this afternoon and announce the iBurger and claim that the days of Maccy D's are over. True, that's unlikely, but in an infinite universe everything will …
Tim Worstall, 10 Sep 2014

CenturyLink said to have pondered Rackspace buy

US telco CenturyLink is said to be considering an attempt to acquire Rackspace, according to Bloomberg. The newswire's report is sparse: nobody is saying anything concrete and folks familiar with the situation are the source. Let's try to guess what's afoot here. CenturyLink already operates a 57-strong global bit barn network …
Simon Sharwood, 08 Sep 2014
Sad cloud

China, clouds, to kill data centre tech market growth

China's data centre kit-providers will take two per cent of the global market from current suppliers, according to newly-released Gartner research titled “Four Highly Disruptive Factors Will Challenge the Survival of Incumbent Data Center Market Vendors.” Gartner says China will advance because it is “buoyed by deep resources” …
Simon Sharwood, 15 Sep 2014
Smartphones

Watch out, Samsung! 3 of top 5 smartphone makers are now Chinese

It was more bad news for Samsung in the third quarter of 2014, as the Korean smartphone maker saw its global market share shrink by nearly 8 per cent, year on year, with most of it going to Chinese rivals. According to the latest figures from Gartner, Samsung remains the worldwide smartphone king, but its market share was just …
Neil McAllister, 16 Dec 2014
iPad Pages app

Apple expands mobile device management program beyond USA

Apple has extended the reach of its Device Enrollment Program (DEP) beyond the USA and beyond end-users. Apple says [PDF] the DEP “ simplifies initial setup by automating mobile device management (MDM) enrollment and supervision of devices during setup and enabling you to configure the devices without touching them.” “Upon …
Simon Sharwood, 14 Nov 2014
Microsoft campus

Microsoft beats cloud drum as revenues remain solid but flat

Microsoft reported flat revenues and shrinking profits for the third quarter of its fiscal 2014, but that was still better news than the analysts were expecting to hear. On average, the Wall Street wizards polled by Yahoo! Finance were betting Redmond would take in revenues of $20.39bn for the three months ending March 31, with …
Neil McAllister, 24 Apr 2014
arrow pointing up

Lenovo posts an INCREASE in desktop PC and notebook sales

Lenovo, the world’s largest maker of PCs, saw its profits leap 24 per cent this spring. The China-based manufacturer reported first-quarter profits of $211m, compared to $170m for the year before. That was from revenue that jumped 18 per cent to £10.39bn. Earnings per share for the giant were up, from $1.65 to $2.03 for the …
Gavin Clarke, 14 Aug 2014

VMware's high-wire balancing act: EVO might drag us ALL down

Comment In the battle for the software-defined data centre, one of VMware's challenges is how to deliver software-defined/controlled storage without screwing up parent EMC's hardware-based storage revenues. VMware is an overall EMC Federation member along with Pivotal and the EMC Information Infrastructure (EMC II) unit. The three are …
Chris Mellor, 26 Aug 2014
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Guess who SAP's picked for UK boss? Yep, it's a distie man

Distribution isn’t typically the first port of call for enterprise software vendors looking to recruit execs, but SAP has broken the mould by tapping up the chief operations man at DCC Exertis to head up its UK and Ireland biz. Cormac Watter, COO at the tech arm of Irish conglomerate DCC — which owns Exertis (formerly trading as …
Paul Kunert, 08 Oct 2014

UK print peddler Annodata slips ring on Berkshire firm's finger

Hertsfordshire-based print services and comms house Annodata has wolfed down once-high-flying enterprise infrastructure supplier Keltec for an undisclosed sum. The pair went public on the marriage today that will see a bunch of vendor accreditations including the HP Gold, VMware Enterprise Solution Provider and Veeam Gold Pro …
Paul Kunert, 03 Nov 2014
Atlantis on the launch pad. Pic: NASA

Death of a Salesman: Enough with the marketing already

Storagebod Reflecting recently on the changes that I have seen in the enterprise IT market, more specifically the enterprise storage market, I have come to the conclusion that over the past five years or so, the changes have not been technological but rather having to do with everything around the technology and its packaging. There …
StorageBod, 09 Sep 2014
HTC

HTC looks to cheaper phones as revenues wane

HTC said that it will pull away from the premium smartphone market and focus its efforts on lower-cost handsets. The company said in its latest quarterly report, published on Monday, that the move would help the company improve its margins as HTC struggles to cope with plummeting revenues. The firm reported 42.9bn NT$ (New …
Shaun Nichols, 10 Feb 2014
man_inks_deal_channel signs contract services

Loss of Wales PSN gig? No worries, says Logicalis UK boss

Services-based reseller Logicalis is looking to fill the void left by losing the Wales Public Sector Network (PSN) gig to BT with more bite-sized projects. Well, that's the plan at least. The Slough-based firm is to be ousted by the Brit telco monopoly on a contract that could be worth up to £420m over the next seven years, …
Paul Kunert, 11 Nov 2014

The Schmidt hits the brand: Apple's iPhone 6 is a year late, scoffs smug search supremo

With Apple under fire for its bendy, broken iPhone 6es, Eric Schmidt at arch-rival Google is only too happy to put his boot in Cupertino. In an interview with Bloomberg TV, the Google chairman and former CEO needled his competitor down the peninsula. When asked what he thought about the hyped up iPhone 6 and iPhone 6 Plus, …
Shaun Nichols, 25 Sep 2014
Poster for Portsmouth Historic Dockyard

Waterfront flats plan for IBM's UK HQ as housing market goes bananas

Office space leased by IBM at its UK headquarters could become waterfront apartments – if a planning application submitted to Portsmouth City Council is approved. The North Harbour Unit Trust, which filed the paperwork, wants a ”partial change of use to 108 residential units" at Big Blue's base in the Lakeside development on …
Simon Sharwood, 21 May 2014
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Newly public dot-dentist flogger Rightside's shares jump on strong domain sales

In its first earnings report since going public, domain-name specialist Rightside reported revenues of $48.8m, a 7 per cent revenue increase over the year-ago quarter, causing its shares to jump by 4.5 per cent. The company is now valued at $173m. Rightside is unique in the domain name industry in that it services every level of …
Kieren McCarthy, 08 Nov 2014
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CSC set for ANOTHER re-org but no redundancies involved

Re-arranging the UK deck chairs on good ship CSC is the strategy the integrator has chosen after shelving plans to make further redundancies, according to numerous sources. The US-owned business does not generally shy away from making redundancies, axing 750 people from its Brit operation in late April and parting company with …
Paul Kunert, 10 Nov 2014

IBM, backing away from hardware? NEVER!

HPC Blog So, it looks like IBM has moved its chipworks over to Globalfoundries, as described by Reg hack Tim Worstall here. But what are the implications for IBM's systems business? I agree that the brutal and implacable economics of the chip business forced IBM’s hand here. Manufacturing microprocessors is a hugely capital intensive …
HTC Anatomy of an Android Update

iPhone 6: The final straw for Android makers eaten alive by the data parasite?

Analysis Today's long overdue update to Apple's iPhone line - which had been moribund for years - look set to squeeze some rival manufacturers to death. New iPhones at last means that Android, Google's smartphone middleware, will soon look attractive only for budget vendors selling into fast-growing emerging markets. The problem, in a …
Andrew Orlowski, 19 Sep 2014
Angry woman on mobile

Mobile giants: 4G is so yesterday. Better IT can kickstart revenue growth

Just as operators struggle to make direct profit improvements from LTE, so the vendors have long given up on 4G upgrades being the solution to all their problems. LTE is the most significant factor in driving revenue growth for the big five infrastructure suppliers, for sure, but the margins and differentiation in the equipment …
Wireless Watch, 07 Nov 2014
SanDisk Extreme 120GB SDSSDX-120G-G25

Will SanDisk move into enterprise kit after its Fusion-io slurp?

Storagebod Can SanDisk make a go of moving into the enterprise with its $1.1bn purchase of Fusion-io? It is a very different market to the consumer space and although the margins are considerably higher, it brings with it many challenges. I think it’ll depend on the go-to-market strategy that SanDisk take and I fully expect them to carry …
StorageBod, 18 Jun 2014
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Arrow steers boss of enterprise wing towards ops control room

A bit of top-level reshuffling at global distie Arrow has led to the recreation of a COO position. The slot will be filled by current president of the enterprise computing wing, Andy Bryant. The last person to sit in the chief operations role was current CEO Michael Long, and the appointment should free up the big boss to tinker …
Paul Kunert, 21 May 2014
parallels logo schematics

Parallels to line up with Linux containers

Parallels is working to bring its automation, security and management wares to the burgeoning world of Linux containerisation. The junior virtualiser finds itself in an interesting position vis a vis Linux containers and Docker, because it has long described its own Virtuozzo product as offering containers. But Virtuozzo is …
Simon Sharwood, 03 Sep 2014

My TIGHT PANTS made my HUGE iPHONE go all BENDY!

Apple's new embiggened iPhone 6 Plus has been snapped up by buyers for, among other things, its thin case and its 5.5-inch touchscreen. But Apple didn't mention that it also appears to be the company's most flexible handset – whether you like it or not. A handful of early adopters have reported that after carrying the phablet …
Shaun Nichols, 23 Sep 2014

RM to schools: You can have third-party kit, just not from us

Education supplier RM has told customers they can buy discounted third-party hardware from Misco after finally shuttering its own reselling operation and closing the PC production order book. A hardware referral agreement was always on the cards, as revealed by CEO David Brookes last month and Misco has beaten rivals to what was …
Paul Kunert, 03 Dec 2013

C'mon, Brocade: QLogic's left the Fibre Channel game. Flat revenues again?

Analysis Brocade is a member of the flat revenue Earth society, with its mix of annual and quarterly Fibre Channel and Ethernet revenues hardly changing between last year and this year. Brocade’s fourth fiscal 2014 quarter revenues of $564m were up by one per cent year-on-year, up from $559m a year ago, and also up three per cent …
Chris Mellor, 25 Nov 2014
The Register breaking news

Google Wallet left on margins by ISIS tap-pay hookup

Visa, MasterCard, Discover and American Express have all signed onto US operator consortium Isis, leaving Google Wallet with just MasterCard as a payment partner. The US operator consortium – set up by AT&T, T-Mobile USA and Verizon – has announced that the four biggest payment processors will create mobile payment applications …
Bill Ray, 20 Jul 2011