Articles about Margins

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
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
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
Intel headquarters, Santa Clara

Intel beats earnings estimates (because nobody expected it to earn much)

Punch-drunk Intel staggered along in the second quarter of its fiscal 2015 and somehow managed to outperform analysts' estimates, even though its results looked even worse than the previous quarter's. Total revenue for the three months that ended on June 27 was $13.2bn. And while that was better than Wall Street hoped for, it …
Neil McAllister, 15 Jul 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
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
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

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
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
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

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

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 …
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
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

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
Takign medicine, image via Shutterstock

Microsoft's magic hurts: Nadella signals 'tough choices' on the way

There’s nothing like sweetening the bad news medicine, and that’s what Microsoft’s tried with its latest internal staff memo. It wasn't until the penultimate para of Satya Nadella’s saccharine, 20-paragraph ramble about magical things that Microsoft's CEO delivered the bad-tasting medicine. “Tough choices” are coming in …
Gavin Clarke, 26 Jun 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

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
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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
chain_relationship_channel

Tech Data leaps into professional services pool

Distie Tech Data has crossed the Rubicon into end-user land – ruffling a few feathers in the process – by acquiring North American data centre and professional services outfit Signature Technology Group (STG). The deal was made public last night and reseller customers are digesting the implications, which range from potential …
Paul Kunert, 28 May 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
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 …

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

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

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

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

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

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
money_yen_dollar_pound

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
Satya Nadella and Stephen Elop

Microsoft's cash-leaking Nokia phones rip off patents, face import ban

A judge with the US International Trade Commission has ruled that Microsoft's Nokia handsets violate patents held by trolling outfit "non-practicing entity" InterDigital, adding to the software giant's ongoing woes in the mobile phone arena. Reuters reports that ITC Administrative Judge Andrew Essex found on Monday that Nokia- …
Neil McAllister, 27 Apr 2015

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
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

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

SamSUNK! Korean giant's electronics biz takes punch to the smartphone profits

Samsung's mobile phone businesses took a nasty tumble in 2014's fourth quarter, with profits at the company's electronics division falling by 27 per cent to 5.35 trillion won ($4.9bn). Samsung Electronics makes all manner of gadgetry, much used by other electronics companies in their own products. But attention has focussed on …
Simon Sharwood, 29 Jan 2015
management management4

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
chart

Don't RELAX! Euro tech market still 'volatile' – Datatec

Logicalis is locked in recovery mode following the sales crash during last year’s World Cup and the loss of the Wales PSN contract to BT, but it is the Westcon distribution arm of parent Datatec that is really motoring. The group, listed on both AIM and South Africa's Johannesburg Stock Exchange, reiterated today in an interim …
Paul Kunert, 15 Jan 2015

Danwood CEO: No more M&A disco watching for us

Danwood no longer wants to be the loner at the edge of the M&A dance floor as romance blossoms between local rivals, especially now its finances suggest it isn’t destined for the scrapheap. The document services specialist was unable to get in on the action during an extensive round consolidation that saw SCC, Xeretec and …
Paul Kunert, 05 Mar 2015

Hey, Spotify! Why do you internet companies hate competition?

Guest opinion Last year Spotify hired a former political strategist in the Obama administration and some of Pandora’s lobbyists to protect its untenable and money-losing business model. I predict that the end goal of these efforts will leave artists and songwriters worse off. The ex-Obama hand is called Jonathan Prince. Spotify’s lobbying …
David Lowery, 15 Jul 2015
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
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
Optus Logo

Optus plans to skim the cream off the cloud

Margins in the cloud are rubbish: when you're selling servers for cents, there's precious little left for the bottom line. But Australia's second-largest telco Optus looks to be smart enough to have figured that out and devise a strategy that instead lets it go for the richest, most-monied parts of the cloud. The strategy was …
Simon Sharwood, 27 May 2015

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

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
Manish_Goel

HP scores ex-NetApp exec to replace Mr 3PAR

+Comment HP is appointing Manish Goel to head up its storage operation as a replacement for the departing David Scott. Scott retired on 6 March, and had the distinction of being employed by HP twice. After his first stint as an HP exec, he left to start up storage company 3PAR, which was then acquired by HP - with Scott put in place to …
Chris Mellor, 10 Mar 2015