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

Arista revenue rises to US$179 million in March quarter

Arista Networks has reported continuing growth, taking its revenue to US$179 million, but at the cost of a slimming of its margins to 65.8 per cent (down from 69.4 per cent a year ago). The revenue growth was strong at nearly 53 per cent higher than a year ago, but it slowed at the end of the period and was only 3.2 per cent up …
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

Australia cracks tech giants' tax dodge code

Australia's Economics References Committee, which has been conducting hearings into corporate tax avoidance, looks to have made a breakthrough by eliciting a new method for taxing multinationals from the nation's Taxation Office. Recent hearings have revealed how the likes of Apple, Google and Microsoft manage to pay such low …
Simon Sharwood, 04 May 2015
Blingtastic Samsung Galaxy

Samsung S6: You might get a Sony camera in it - or you might not

When you buy a Samsung S6 you might get the impressive Sony IMX240 camera sensor ... or you might get the Samsung Isocell unit. In the published specifications for S6 and S6 Edge, Samsung doesn’t give any details on the camera sensor, saying just “16MP OIS(rear), 5MP (front)” but the two sensors are pretty different and there is …
Simon Rockman, 06 May 2015
£10 notes. Pic: Howard Lake

Sun shines on Datatec despite Logicalis' sales 'n' contract woes

It was the Westcon distribution arm that kept the tills ringing for parent Datatec, as integrator sub Logicalis was struck by a “significant” contract loss in Blighty and weaker product reselling. Across the group – which also includes consultancy Analysis Mason – revenues leapt by 13.3 per cent to $6.4bn for fiscal ’15, ended …
Paul Kunert, 13 May 2015

$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
AMD CEO Lisa Su speaking at the firm's 2015 financial analyst day

Rip up your AMD obits: Gaming, VR, embedded chips to lift biz out of the red by 2016, allegedly

Struggling chipmaker AMD hosted an all-day meeting in New York City on Wednesday to reassure financial analysts that its product portfolio is strong and it plans to return to growth this year. During the meeting – AMD's first in three years – CEO Lisa Su said she plans to return the company to profitability in the second half of …
Neil McAllister, 06 May 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

How do you sell fewer hard drives but make more profit? Let's ask ... Western Digital

Western Digital's third quarter of fiscal 2015, ended April 3, raked in sales of US$3.55bn – that's 4.1 per cent down on the year-ago quarter, and 8.7 per cent less than the previous quarter. It banked a profit of US$384m; that figure was US$375m a year ago, so that's a 2.4 per cent gain. WD recorded a profit of US$460m in the …
Chris Mellor, 29 Apr 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
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
Uber launch party by https://www.flickr.com/photos/5chw4r7z/ CC2.0 sharelalike attribution https://creativecommons.org/licenses/by-sa/2.0/

Why does Uber keep its drivers' pay so low? Ex-CFO: 'Cos we can'

In an interview on Sunday's episode of Wall Street Week, Mike Novogratz, principal and director of investment firm Fortress Investments, who was speaking about corporate greed and income inequality, explained his thoughts with an anecdote about former Uber CFO Brent Callinicos. Callinicos, who had previously been a bean-counter …
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

Hyper-convergence? I believe – just not like this

There's a horrible, horrible thing I get asked at least three times a week: "What is hyper-convergence?" This is like an icepick into my soul, because I consult with almost all of the current hyper-convergence vendors in one form or another and the truth is, “hyper-convergence” is a meaningless marketing term as wishy-washy and …
Trevor Pott, 04 May 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
LG G4

LG glances at red-stained bank account, crosses fingers for G4

South Korean electronics giant LG is putting on its best face after its bottom line plunged by two thirds. LG said that the drop in currencies was the main reason its net income for the first quarter of 2015, ended March 31 [PDF], stood at 38bn Korean Won (US$35m) compared to 98bn (US$91.5m) from the year-ago period – a 61 per …
Shaun Nichols, 29 Apr 2015
IMation_Q3fy2014

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
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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

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
RAF Chinook throws up dust cloud. Pic: MoD under Open Government Licence

Hold on to your hats people, the MoD's found the cloud

The Ministry of Defence has inked the single largest Microsoft Enterprise Agreement across the public sector, designed to gradually shift users to the cloud, specifically Office 365. The EA was tendered under Lot 2 of the Technology Products agreement, a framework that kicked off in November last year, and Comparex beat …
Paul Kunert, 20 May 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
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

Facebook's Open Compute could make DIY data centres feasible

DIY vs COTS: Part 2 Last time I looked at the PC versus console battle as a metaphor for DIY versus Commercial Off the Shelf (COTS) data centres, and touched on the horrors of trying to run a DIY data centre. Since 2011, however, we've had the Open Compute Project, initiated by Facebook. The ideal is some kind of industry-standard data centre, with …
Trevor Pott, 07 May 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

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

Cisco's Chambers: white box is dead and WE KILLED IT

Cisco's now-outgoing CEO John Chambers has reiterated his belief that the Borg has already beaten off the white-box market. In an interview with CNBC – transcript here (with editing suggesting voice recognition rather than human transcription) – Chambers says that extending the company's lock-in strategy across platforms and …
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
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
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
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

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
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