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Articles about Margins

Westcon Group consumes sister biz Intact Integrated Services

Datatec-owned enterprise distie Westcon Group (WG) is to swallow sister company Intact Integrated Services to beef up margins by selling project, support and managed services, primarily on Cisco kit. The move is part of a wider play to consolidate all services operations under a single roof, and highlights efforts by WG to give …
Paul Kunert, 24 Apr 2014
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

Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales

Gigantic retailer Amazon grew sales 23 per cent, year on year, in its second quarter of 2014 – and managed to lose even more money than usual. The e-retailer and cloud giant reported an operating loss of $0.27 per share on Thursday on revenues of $19.34bn for the three-month period, compared with analyst expectations of a loss …
Jack Clark, 24 Jul 2014

Ballmer leaves Microsoft board to spend more time with his b-balls

Former Microsoft CEO Steve Ballmer is today stepping down from the Windows giant's board of directors – just six months after he was succeeded by incoming chief exec Satya Nadella. Ballmer announced his retirement in August last year, but remained at the helm until Nadella took over in February. Shy-and-retiring Ballmer also …
Chris Williams, 19 Aug 2014

Activist investors force Riverbed into climbdown over cash 'n' costs

Another one bites the dust as activist investor Elliott Management forces networking biz Riverbed into a strategic review of its options. Despite announcing good second and third quarter results with increasing revenues and profits, Riverbed has had to bow to activist investors' concerns about shareholder value by initiating a …
Chris Mellor, 24 Oct 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 …

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
Measuring up Apple

PEAK APPLE: One MILLION fewer iPads sold this quarter

It’s lonely at the top, or so saying goes, but Apple may not have to wait too much longer before it rubs shoulders with those playing catch-up in the global PC arena after Q2 sales declined off the back of a slab crash. Figures for the last three months collated by the beancounters at Canalys show Tim Cook’s lot sold nearly one …
Paul Kunert, 05 Aug 2014

Sing it, Systemax: 10 straight quarters plunging in a row, 10 straight quar....

Shape-shifting mega reseller Systemax has finally broken its run of top line wobbles after 10 consecutive quarters but the US titan still couldn't turn a churn out a profit in its calendar Q2. The New York Stock Exchange-listed dealer last night reported low single-digit sales growth of $831.1m, representing a rise of 1.4 per …
Paul Kunert, 30 Jul 2014
Disney's Beagle Boys

Copyright thieves' cyberlockers slurp MILLIONS from honest creators, study finds

An economic study of direct download locker sites has found most are used for copyright infringement – and calculates that they're highly profitable. The study looked at download sites like Mega, Rapidgator and Depositfiles, and streaming lockers like Movshare.net, Flashx.tv and Streamcloud.eu. The study, carried out by NetNames …
Andrew Orlowski, 18 Sep 2014
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
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
Nimble Storage revenues Q2cy2014

Better be Nimble, tech giants, or mutant upstarts will make off with your sales

Hybrid array vendor Nimble Storage saw revenues grow strongly as storage giant incumbents were unable to deliver equivalent price/performance products. Revenues were $53.8m for its second quarter, ended, an 89 per cent increase year-on-year and beating its own guidance of $49m to $51m. There was a net loss of -$26.1m, 149 per …
Chris Mellor, 27 Aug 2014

OpenStack kingpin Rackspace hires bankers to help it mull 'inbound strategic proposals'

Rackspace has retained Morgan Stanley to help it evaluate "inbound strategic proposals". In other words, a partnership or acquisition is something that may lie in Rackspace's future, according to Bloomberg, which broke the news on Thursday. "Our board decided to hire Morgan Stanley to evaluate the inbound strategic proposals, …
Jack Clark, 15 May 2014
Screenshot of Bill Gates appearing on Fox Business

Bill Gates: Sell off Bing? Nah. Xbox? Maybe...

Microsoft cofounder and board member Bill Gates says he's leery of unloading the company's historically loss-making Bing division, but he wouldn't necessarily be opposed to spinning off Xbox. Gates made the comments in an interview with Fox Business on Monday alongside mega-investor and Berkshire Hathaway CEO Warren Buffett. …
Neil McAllister, 05 May 2014
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
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 …
Euro notes

Termination charges drop smacks Vodafone and EE in the WALLET

The reduction in how much mobile networks receive for handling incoming calls has hit both Vodafone and EE so hard that they have both separated out the charges in interim financial reports. Brit multinational Vodafone announced a global drop in its revenue of 4.2 per cent for the quarter while UK mobile firm EE's financials saw …
Simon Rockman, 25 Jul 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

Intel cutting prices, taking on all comers in fondleslab market grab

Intel is so desperate to gain a foothold in the fondleslab market that it's willing to slash its margins in exchange for market share, supply-chain sources claim. Industry insiders have told Taiwanese tech-news rag DigiTimes that Chipzilla has been cutting prices and offering marketing subsidies to tablet vendors willing to …
Neil McAllister, 24 May 2014
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

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

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 …
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

EMC feels burn of declining demand for enterprise storage

EMC's share price dipped today after it revealed that fiscal Q1 profits crashed by close to a third on the back of rising operational costs and falling sales of enterprise kit. The world's largest maker of storage equipment reported sales of $5.48bn for the three months ended 31 March, with products down 3.3 per cent to $3.08bn …
Paul Kunert, 23 Apr 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
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
WD Caviar Green 2TB

Disk daddy WD dishes out more drives, but profits dip anyway

For its final fiscal 2014 quarter WD revenues were flat at $3.7bn but profits declined despite the firm having sold a greater number of disk drives. SSD sales declined compared to the previous two quarters. The increased drive demand came from PCs, gaming devices and notebooks but, unfortunately gaming and notebook drives have …
Chris Mellor, 31 Jul 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

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

Systemax CEO: Can't get consumer biz out of the crapper

It is a new calendar and financial year for shape-shifting box-shuffler Systemax but the same problem remains: it is hamstrung by a "weak" consumer division that is a burden on the relatively fit B2B operation. The New York-listed reseller last night reported Q1 results ended March with sales declining one per cent to $873.4m, …
Paul Kunert, 30 Apr 2014
management cloud2

Leading like Mad Leo: HP's Whitman rolls out Apotheker's PC plan

There’s something in the water at Hewlett-Packard. No, I’m not referring to the "HP Way", that pseudo-Victorian philanthropic work creed. It’s the propensity for those running this tech giant to make really big bets — multi-billion-dollar rolls of the dice have become standard operating procedure. Three of HP’s most recent …
Gavin Clarke, 07 Oct 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

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
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

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 …
The Register breaking news

Rackable's margins still in witness protection program

Rackable's new CEO suffered through a tough first 90 days on the job, as gross margins continued to vanish. Rackable today reported second quarter revenue of $82m – a 14 per cent year-over-year rise. It also posted a $40m net loss during the period versus a $5.3m profit in the same period last year. The profit disappeared as …
Ashlee Vance, 26 Jul 2007

Surface more profitable than iPad

Microsoft's Windows RT-based Surface tablet - designed to compete with the full sized Apple iPad - has a larger profit margin than its rival, a teardown analysis has revealed. The Surface, with its minimum 32GB of Flash storage and optional Touch Cover, has a bill of materials (BoM) that totals $271. Chuck in an additional $13 …
Caleb Cox, 06 Nov 2012

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
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
European Union Flag

Euro recession over as sales rebound for mega distie Ingram Micro

Economic recovery on both sides of the Atlantic – and to a lesser extent sales of Apple's iPhone in certain countries across Europe – helped Ingram Micro offset declines in its mobility and Asia Pacific wings… but only just. First calendar quarter revenues at the world's bulkiest tech distie went up one per cent year-on-year to …
Paul Kunert, 24 Apr 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
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
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
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
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
The Register breaking news

Facebook reports revenues up 40% but Wall Street says 'meh'

Mark Zuckerberg must be tearing at his hoodie after Facebook's shares dipped following the release of what are, on the face of it, very respectable quarterly results for his company. Revenues for Facebook's fourth quarter of fiscal 2012 stand at $1.585bn, up 40 per cent on this time last year, with advertising up 41 per cent and …
Iain Thomson, 31 Jan 2013