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Articles about Margins

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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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
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
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
The Register breaking news

Fat margins squeeze Apple against Android

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
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

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
Huawei E586

Three daddy Hutch has no interest in O2

Three network owner Hutchison Whampoa has ruled out making a bid for O2 in the UK. Hutchison agreed to take O2 Ireland off Telefonica's hands last year. The €850m deal is currently pending a final session of horse-trading before approval at the EU level. In an interview with the Telegraph, Three UK's CEO Dave Dyson said "We don …
Andrew Orlowski, 01 Apr 2014

Northamber grabs ladder, claims PC market burning

Northamber's colourful chairman is forecasting a "more worthwhile future" - one that is less dependent on tech hardware - but the latest financials still bear the scorch-marks of attempts put out its burning PC biz. The UK's oldest tech wholesaler has been rather more quiet since listing on AIM, which means the company no longer …
Paul Kunert, 07 Mar 2014

HTC warns of likely loss next quarter

Taiwanese mobile-maker HTC has warned that it may have its first ever operating loss in the third quarter, sending its shares sliding nearly seven per cent. HTC said in a statement announcing its Q2 results that its margins had been hit by "the relatively higher cost structure, lack of economy of scale and certain provisions …
HP cloud

HP rides data center growth out of sludgy IT market

HP has reported better than expected financial results on the back of strong server sales and – unexpectedly – good performance in the struggling PC market. The IT company reported an earnings-per-share of $0.90 and a net revenue of $28.2 billion on Thursday for its first fiscal quarter results, beating analyst expectations of $ …
Jack Clark, 20 Feb 2014
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Sales dive at UK's oldest tech wholesaler: PC crash splashes Northamber in red

UK wholesaler Northamber swung to a dramatic loss in fiscal '13 caused by a costly restructure, sliding commodity product sales and eroding margins. The Surrey-based distie – Blighty's oldest tech wholesaler – today reported an operating loss of £1.15m for the year to 30 June, compared to a profit of £97,000 in the previous 12 …
Paul Kunert, 08 Oct 2013

Vodafone, Moneygram hook up to create mobe money MONSTER

A deal struck between Vodafone and Moneygram has added 334,000 international agents from whom you can send money to Vodafone's M-Pesa. This will allow migrant workers in around 200 countries to send funds home to the Democratic Republic of Congo, Egypt, Fiji, India, Kenya, Lesotho, Mozambique, South Africa and Tanzania. There …
Simon Rockman, 12 Feb 2014
JassyAWs

Amazon HALVES cloud storage prices after Google's shock slash

Amazon has cut its cloud prices – but not far enough to bring the cost of using its online services entirely below that of rival Google. Prices for Amazon Web Services' mainstay S3 storage will fall by about 51 per cent, said the company's senior vice president Andy Jassy at the Amazon Web Services summit in San Francisco on …
Jack Clark, 26 Mar 2014
grab_that_cash

Cisco Gold partner Cisilion boosts fiscal 2012 profits

Bottom-line boosting IT services worked well for Cisco Gold house Cisilion in its last fiscal year while hardware and software licensing margins tightened. Results just filed at Companies House show that in the year to 31 May 2012, sales at the Surrey-based network integrator grew 10 per cent to £26m, in line with management …
Paul Kunert, 08 Mar 2013
Motorola StarTAC

HELLO LENOVO. Do you really, really want to make smartphones?

Lenovo has bought third place in today's smartphone market by acquiring fallen giant Motorola. Not a bad performance since it only created its 'MIDH' mobile division three years ago. But is this really a prize worth fighting for? Lenovo took the No.1 spot in PCs last year from HP with a huge home advantage in China, where it …
Andrew Orlowski, 31 Jan 2014

Apple to maintain phone profit lead through years of 'enormous transition' – report

Some observers have said that the high-profit party is over for Apple's iPhone now that the global smartphone market is becoming saturated, but the market researchers at IDC would beg to disagree. IDC projections of smartphone average selling prices through 2018 – graph There are low-cost Android phones and expensive ones – but …
Rik Myslewski, 28 Feb 2014
Apple CEO Tim Cook on the cover of Bloomberg Businessweek

You're spending WHAT on iPhone 6? Wells Fargo downgrades Apple stock

Analysts at Wells Fargo have downgraded their outlook on Apple shares for this year, taking it down from "outperform" to "market perform". A report on the fruity firm stuck to a valuation of between $536 and $581 a share, but it pointed out some concerns about the gross margin of profit on the upcoming iPhone 6 as well as …
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
Oracle's Iron Man 2 ad

Oracle: Our figures say hardware has flatlined, but we assure you it hasn't

Database and wannabe hardware giant Oracle has beat Wall Street expectations after nine disappointing months, and said cloud services are one of its three main growth areas for next year. The company reported its second-quarter results for its fiscal 2014 year on Wednesday, and surprised analysts by stemming the rot in new …
Jack Clark, 19 Dec 2013
IBM Selectric Golfball

IBM renews attempts to offload server biz: report

IBM is trying to offload its “low-end” server business, according to The Wall Street Journal. The Journal's report suggests Dell hasn't turned up its nose in disgust at the idea of buying Big Blue's server unit and that Lenovo could also be sniffing around. IBM's motivation for selling off low end servers is not clear, nor is …
Simon Sharwood, 20 Jan 2014

Rackspace refuses to enlist in cloud's latest price cutting war

Cloud provider Rackspace will stand on the sidelines as Amazon, Google, and Microsoft slash prices in an attempt to destroy each other's profit margins. The web hoster's chief technology officer, John Engates, told El Reg's cloud bureau by email that "Rackspace is not a commodity cloud provider," when we asked if it would match …
Jack Clark, 08 Apr 2014
Samsung Diva

Seoul-blackening disappointment for Samsung backers as stock droops

Shares in Samsung Electronics fell to their lowest in four months, dropping over four per cent on Thursday, after analysts said the firm's quarterly earnings were likely to be hit by the strong won and weaker business in its display unit, according to Reuters. The Korean chaebol's stock closed down 4.6 per cent on its fifth …
Ingram Micro

Eurozone still the damp patch on Ingram's corporate pants

Distie juggernaut Ingram Micro rolled out a bumper set of sales growth numbers last night largely aided by acquisition. Yet poor trade in the Eurozone let the side down, remaining the blot on the profit and loss sheets. Revenues for Q2 ended 29 June were up 17 per cent year-on-year to $10.3bn, with the Brightpoint and Aptec …
Paul Kunert, 25 Jul 2013
Sleep Cycle iOS app screenshot

Where the HELL is my ROBOT BUTLER?

For decades the development of the computer has been driven by businesses. Businesses bought mainframes, PCs and servers. They bought in such quantity that the consumer was, for most technology companies, a mere afterthought. Today, consumer purchases of endpoints outstrip business purchases by a wide margin. None of this is …
Trevor Pott, 04 Apr 2014
channel_partners_deal_handshake

Lenovo banks on $1 BEELLION Moto turnaround in SIX quarters

Lenovo boss Yang Yuanqing has boasted that he can wipe Motorola Mobility’s $1bn-a-year (£600m) losses in just six quarters once his firm takes the helm at the handset maker. Yang told Bloomberg on the sidelines of Mobile World Congress this week that he could make the turnaround without the need to cut any jobs. “Don’t be …
Phil Muncaster, 27 Feb 2014

Mathematicians spark debate with 13 GB proof for Erdős problem

When Pierre de Fermat famously complained that he didn't have space to write the proof of his famous “Fermat's Last Theorem”, he only ran out of space of the margin of a book. Now, a pair of mathematicians at the University of Liverpool in the UK have produced a 13GB proof that's sparked a debate about how to test it. The …

Cabinet Office admits it was forced to extend tech procurement rig

Cabinet Office was forced to paper over cracks in its procurement strategy by extending an infrastructure kit framework for two-thirds of a year as replacements remained way off completion, a spokesman admitted. The Commodity IT Hardware & Software (CITHS) agreement had been set to go cold at the start of March having run for …
Paul Kunert, 03 Feb 2014
Scrooge McDuck

G20 gives Google, Microsoft, Apple et al tax deadline

The world's top 20 finance ministers have signalled once again that they're sick of their taxes disappearing offshore and have signalled a strong intention to get their cash back. The ministers in question are all members of the Group of Twenty (G20) and gathered in Sydney, Australia, over the weekend. The Communiqué (PDF) …
Simon Sharwood, 23 Feb 2014

China's smartphone market slows down

The juggernaut that is the Chinese smartphone market slipped a gear for the first time in 27 months in 2013's fourth quarter, declining 4.3 per cent from the previous three months, according to IDC. The bean counter’s Asia/Pacific Quarterly Mobile Phone Tracker revealed that 90.8 million units were shipped in the last quarter in …
Phil Muncaster, 14 Feb 2014

Foxconn mulls US expansion as States compete for business

Contract manufacturing giant Foxconn could be set for a major expansion into the US, although not with the low-cost, labour intensive factories that have defined its presence in China. Chairman Terry Gou told reporters at the group’s annual Chinese New Year party on Sunday that “the US is a must-go market”, according to Reuters …
Phil Muncaster, 28 Jan 2014

Restructuring costs drag down Avnet's Q2 profits

The better start to fiscal '14 at Avnet Inc is continuing though EMEA remains the damp patch for the enterprise tech side of the house and component sales in the Americas were weaker than expected. If revenue gains are the measure of success - which they frequently are in wholesaler land - then Avnet did well, with group …
Paul Kunert, 23 Jan 2014
Nvidia GeForce 8700M GT

Gamers save Nvidia's bacon in storming fourth quarter

Nvidia has reported better-than-expected fourth quarter financial results, with revenues of $1.14bn over the three months ending January 26, up 9 per cent on the last quarter and 3 per cent on the year-ago period. "Quarterly revenue came in well above our outlook, driven by PC gaming, capping an outstanding year for our GPU …
Iain Thomson, 12 Feb 2014

Official: British music punter still loves plastic

The UK recorded music industry grew 1.9 per cent last year according to the BPI, despite falls in revenue from sales of CDs and music videos. Amazingly, CD revenue fell only 6.4 per cent in 2013 year on year - and still forms the backbone of the industry. A full £365.4m out of the total of £716.8m comes from CDs and videos. …
Andrew Orlowski, 19 Feb 2014
OCZ Vertex 4 256GB SSD

OCZ successfully sells self to Toshiba

Death-row solid state disk vendor OCZ has sold its brains to Toshiba for $US35m. OCZ's been limping along for ages and last week declared bankruptcy and said Toshiba was the most likely source of cash to give its long-suffering institutional investors something with which to light their cigars. The Japanese concern has indeed …
Simon Sharwood, 03 Dec 2013
big droplets falling from rain cloud

Commoditisation. It's HAPPENING. This is NOT a drill

Your mileage may vary somewhat but 2014 is already beginning to get interesting from a storage point of view. And it appears to have little to do with technology or perhaps too little technology. Perhaps the innovation has stopped? Or perhaps we’re finally beginning to see the impact of Google/Amazon and Azure on the Enterprise …
StorageBod, 07 Feb 2014

PC market: ABANDON HOPE all ye who enter here

If PC makers were despondent that slablets of every type continue to hog consumer spending this year, then 2014 will bring little relief - and may finally shove those teetering on the brink of the abyss over the edge. Providing the box counters at Canalys have done their forward calculations correctly, tabs will "almost outship …
Paul Kunert, 26 Nov 2013
Northamber

Son of Phillips: Northamber is not exiting Chessington HQ

The heir apparent to tech distie Northamber has insisted to El Chan the company is not going to exit the Chessington industrial estate that it calls home after all. As revealed by us yesterday, the Surrey-based distie submitted an application with Kingston Council's Planning Database on 23 March that would have permitted 28 …
Paul Kunert, 08 Apr 2014

Bottom falls out of Nokia's network rump

Nokia Solutions and Networks (NSN) is facing a 19 per cent drop in sales for the last quarter and an even bigger challenge for the coming 12 months: how to win enough new biz to support a company soon to be shorn of its handset division. NSN will comprise the majority of the company once the sale of the Finnish giant’s once- …
Phil Muncaster, 21 Jan 2014

High-end SAN peddler Dot Hill delivers profit – market says 'meh'

Three consecutive quarters of profit and a full year profit after seven years of losses: Dot Hill is looking good and CEO Dana Kammersgard can breathe more easily. Fourth quarter 2013 revenues were $58.8m, up sequentially from the prior quarter's $52.6m and even more than the year-ago quarter's $44.1m; it's up 29 per cent, in …
Chris Mellor, 07 Mar 2014
india

Apple India to put mini-shops in suburbs to flog entry-level kit

Apple’s ramping up its presence in India with the launch of a range of small brick-and-mortar stores selling mainly entry-level iPhones and fondleslabs, according to a local report. The shops will be set up by disties Redington and Ingram Micro, as well as other partners, in the neighbourhoods of major and tier two cities, …
Phil Muncaster, 12 Mar 2014
Microsoft Surface bomb

Microsoft loses cash on each Surface slab – but core biz strong as ever

Microsoft again reported solid earnings for the second quarter of its fiscal 2014 on Thursday, beating analyst estimates with figures that in some cases exceeded its own expectations. Sales were up for Redmond's Devices & Consumer and Commercial divisions alike, for total revenues of $24.5bn (£14.73bn) for the three months …
Neil McAllister, 24 Jan 2014
Chinese Angry Bird toy rip-off

Oh, so you've founded a disruptive storage upstart? Do tell me more

So you’ve founded a new storage business. You’ve got a great idea and you want to disrupt the market. Good for you. But you want to maintain the same old margins as the old crew? Where do we start... So you build your startup around commodity hardware, using the same gear I can buy off the shelf from PC World or order from my …
StorageBod, 17 Feb 2014
TerminatorGoogle

Now we're cookin' on gas: Google crafts sugar-alert contact lens for diabetics

Google's skunkworks "X" lab is building a contact lens that can monitor glucose levels in the tears of diabetics, and warn them when it drops too low. The wireless-communicating device was unveiled by Google in a blogpost on Thursday, and may also one day contain tiny LEDs that'll light up if the wearer becomes hypoglycemic. " …
Jack Clark, 17 Jan 2014

Google slashes cloud storage to $0.026 per GB. Your move, Amazon

Google has dramatically lowered its cloud prices far below those of its rivals – as the search kingpin seeks to eradicate the fat profit margins of the cloud industry. The web giant announced today at its Google Cloud Platform event in San Francisco a 68 per cent price drop across the board for Google Cloud Storage – as El Reg …
Jack Clark, 25 Mar 2014

Insight warns Q1 sales and operating profits to fall

Insight Enterprises hasn't managed to dust off the economic cobwebs just yet if prelim calendar Q1 financials are anything to go by. The reselling powerhouse said today it expects revenues to decline five per cent on the same quarter a year ago to $1.2bn, and warned operating profit will drop to $17m from $25.6m - excluding …
Paul Kunert, 19 Apr 2013
closed_sign shut down under collapsed liquidation

RM begins redundancy talks with defenestrated hardware staff

Spare a thought for the poor souls at education supplier RM, which started its redundancy consultation period yesterday in the wake of the company's decision to shutter its PC production facility. RM confirmed last month that some 300 people in its Education Technology unit will be laid off as it tries to carve out a brighter …
Paul Kunert, 20 Nov 2013

Crown Commercial Services turn screws on Commodity IT suppliers

Crown Commercial Services is turning the screws on suppliers operating on the Commodity IT Hardware & Software framework by cutting margins and ruling that all orders over £250k will require special approval. These new terms come into effect on 1 March and run for eight months, following CCS's decision to extend the agreement, …
Paul Kunert, 29 Jan 2014

Enormo-distie Avnet's profits nosedive FORTY PER CENT

Avnet chief Rick Hamada said his IT distribution giant will need to cut another $40m in costs to turn itself around - after its net income dropped nearly 42 per cent in its fiscal third quarter. Hamada said the new cost reductions should be done by the end of the next quarter, bringing its entire savings for this fiscal year to …