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Articles about Margins

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

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

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
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

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

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
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

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

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

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
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

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 …
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

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
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

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

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

Crumbs, we're going to lose that public sector bid - Jeeves, send for the lawyers

The number of complaints raised by businesses over the awarding of public sector contracts has more than doubled over the last year, according to new figures. According to data released by the Cabinet Office following a freedom of information request by Pinsent Masons, the law firm behind Out-Law.com, business complaints about …
OUT-LAW.COM, 30 Jul 2013
Wii U

Ninten-DON'T: Wii U bomb blows Mario Kart giant off track – but new console promised

Nintendo has blamed lacklustre Wii U sales after the company finished its financial year $464m in the red. But it does have a rescue plan in mind – fresh gear for China and emerging markets. The games icon said that for the 12 months to March 2014, its flagship home console plodded along at just 2.72 million hardware units sold …
Shaun Nichols, 07 May 2014
euros_channel_money

CenturyLink slashes prices to guarantee its megacloud future

When your entire market is hellbent on destroying itself through an endless death march of price cuts, you're faced with a choice, either you hold on tight and keep cutting, or you get into another business. Major co-location provider CenturyLink is opting for the former and to help it along is beginning to put the assets of its …
Jack Clark, 01 May 2014
App Store's 25 billionth download, credit Apple

Apple: Wow, thanks for the $10bn-a-year App Store. We'll be on the beach with our 30%

Apple claims its App Store racked up $10bn in sales in 2013. And in December alone, the online shop brought in $1bn in revenue and dished out three billion downloads, we're told. "We’d like to thank our customers for making 2013 the best year ever for the App Store,” Eddy Cue, Apple's senior vice-president of internet software …
Shaun Nichols, 07 Jan 2014
Job cuts jpeg

HP's hiring: UK jobs for, er, UK workers.... maybe

HP has refused to rule out making roles redundant in the UK and shifting them to parts of Europe where average salaries are lower. Cost cutting HP last week entered into consultation with the works council and yesterday engaged with union types over plans to slash 7,100 roles across the region, the last tranche of 34k job cuts …
Paul Kunert, 10 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
DellMachine

Dell exec: HP's 'Machine OS' is a 'laughable' idea

Dell thinks HP's bet-the-company approach on an entirely new open source operating system built around systems based on memristors and photonics is "laughable". When asked at a meeting in San Francisco on Thursday about their thoughts on HP's just-announced, memristor-based "Machine OS", Dell software chief John Swainson and …
Jack Clark, 12 Jun 2014

Foxconn-rebrander Apple to rebrand hardware from other Taiwanese firms, too

Apple is planning to work with new manufacturers in China to beef up its supply chain and meet growing demand for the iPhone 5S. The Wall Street Journal quoted unnamed sources who claimed the Taiwanese firm Wistron will soon join Pegatron and Hon Hai as a manufacturer of the 5S. The Taipei-based smartphone and computer …
Jasper Hamill, 07 Nov 2013
Photo of billboard marketing Microsoft Surface with Windows RT

Microsoft loses grip on Christmas shoppers... despite XBox boost

Microsoft's second quarter results, posted on Thursday, reveal that the software giant struggled in the sexy world of devices during the all-important Christmas shopping period. These are the first numbers indicating how the battle between PCs and smart devices played out over the battleground for consumers' wallets that is …
Gavin Clarke, 24 Jan 2014
Bored girl

ARRAY WITH YOU! Storage is growing... but you'll have to make way for new tech

Despite my enthusiasm about recent upgrade announcements, there’s a part of me that wonders: who really cares about arrays these days? The announcements from IBM, HDS, NetApp and the inevitable EMC announcement later in the year just leave me cold. The storage array is nearly done as a technology: are we going to see much more …
StorageBod, 15 May 2014
Windows XP boot screen

Win XP war, huh! What is it good for? Enormo IT reseller Insight

A currency tailwind in EMEA, PC munching customers fleeing from Windows XP support doom on both sides of the Atlantic, and far leaner restructuring charges lifted Insight Enterprises' Q1 2014 financials. The Fortune 500 tech reseller reported a year-on-year three per cent hike in sales to $1.2bn in the period from January to …
Paul Kunert, 02 May 2014

Hello Warsaw: Greenland ice loss will be OK 'even under extreme scenarios'

The UN Climate Change Conference in Warsaw is set to wind up tomorrow, probably without establishing any real prospect of human carbon emissions being seriously reduced in the foreseeable future. Many are worried that this could mean disastrous rises in sea level this century, with associated human misery on a grand scale. In …
Lewis Page, 21 Nov 2013

HANA on a minute – is that a 10PB RAM cloud server from SAP? IT IS

SAP is cutting off its legs to save its arms by rejigging its software licensing approach for the cloud. The company threw open the doors to a new online marketplace on Wednesday that lets punters to buy and consume its technology in an as-a-service format, as the world's largest maker of business software tried to goose its …
Jack Clark, 06 Mar 2014
BlackBerry bleeding

BlackBerry to be throttled by own supply chain

Mobile phone makers that can't sell 35 million phones every six months – three per cent of the global market – are doomed, according to Taiwanese analyst outfit Trendforce. The firm has just popped out some predictions about the mobile market, one of which suggests “obtaining upstream components and materials at good prices can …
Simon Sharwood, 14 Nov 2013
TX4 Black Cab

Google patents ROBO-TAXIS to ferry punters into advertiser's shops, restaurants, etc for free

What's holding you back from online shopping? Not being to touch or test drive the thing you desire before splashing the cash? What if someone were to drive you to the store, dealership or wherever, to seal the deal for free? Great idea, huh? Well, Google just patented it. The web ad kingpin, which designs self-driving cars and …
Shaun Nichols, 28 Jan 2014
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

'Eventful but positive' year for RM as it quits the PC-making world

Shape-shifting education supplier RM was in philosophical mood as it exited a biz-changing fiscal '13 with profits up and revenues down, impacted by fewer – but higher margin – Building Schools for the Future contracts. Turnover in the 12 months to 30 November fell nine per cent year-on-year to £261.7m (8.4 per cent excluding …
Paul Kunert, 03 Feb 2014
channel_teaser_money_top

While rest of Britain partied, Probrand spent Olympic year recovering

2012 was a year of excitement for many in Blighty, with business getting a boost from both the Queen's Diamond Jubilee and the Olympics, but for Birmingham-based reseller Probrand it was a year of recovery. After a dramatic calendar 2011, when the firm deliberately exited low-margin high volume sales in the public sector - and …
Paul Kunert, 01 Aug 2013
Crystal ball via http://www.manoftaste.de/

Never mind software-defined HYPE, 2014 will be the year of REALLY WEIRD storage boxen

As as we come to the end of another year, it's worth looking forward to see what – if anything – is going to change in the storage world next year, because this year has pretty much been a bust as far as innovation and radical new products are concerned. So what is going to change? I get the feeling not a huge amount will. …
StorageBod, 19 Dec 2013
Intel logo

Intel's fourth quarter a bummer, as expected

Intel helps kick off the high tech earnings season by reporting its financial results for the fourth quarter and full 2012 year, and as Wall Street and Intel top brass had been anticipating, it was not a killer quarter. It was, perhaps, not as bad as many had expected given the challenges in the PC and server rackets and Intel's …
nuclear war launcher usb hub

VMware versus Nutanix: With Dell charging in, it's time to end the war

With the Dell-Nutanix tie-up now public knowledge, expect a stream of digital vitriol to follow. There's a lot of bad blood between the VMware faithful and Nutanix, not the least of which is due to Nutanix's completely rational decision to support multiple hypervisors – from Microsoft's Hyper-V to VMware's ESX tech. The …
Trevor Pott, 24 Jun 2014

Dell gambles solid server sales for NetSuite's riches

The world’s number two-server maker is gambling its core business on cloud sales and services in a deal with NetSuite. Dell has become a global reseller of the latter’s hosted enterprise resource planning (ERP) software suite and will also implement NetSuite for customers. The deal will see sales people from the recently …
Gavin Clarke, 27 Feb 2014

Imation posts FOURTEENTH loss-making quarter

Scalable-storage biz Imation's revenue slump continues while management continues to talk the talk about recovery, which – worryingly, for Imation – depends mainly upon storage array product developments in a brutally competitive market. The firm's revenues – and profitability – crashed as tape and optical disk media sales …
Chris Mellor, 01 Aug 2013
The Register breaking news

Amazon cuts S3 storage prices AGAIN

Cloud titan Amazon Web Services has cut the cost of getting data out of its storage service, putting pressure on rivals Google and Microsoft. Request pricing for S3 GET operations across the company's nine globe-spanning data center hubs have been reduced by 60 per cent, and prices for PUT, LIST, COPY, and POST requests have …
Jack Clark, 03 Apr 2013
closed_sign shut down under collapsed liquidation

Resellers, distributors - your countdown to oblivion starts NOW

Whither the channel when it's all in the cloud? Whence the box-shifter when no one actually buys PCs any more? The answer is, of course, that once a particular business model has no more business then that business model ends. It is, however, possible to look at this in rather more sophisticated terms. The most obvious, since …
Tim Worstall, 17 Dec 2013

Mellanox trips on faulty InfiniBand cables in Q4

InfiniBand and Ethernet switch and adapter maker Mellanox Technologies said after the market closed on Wednesday that the company was not going to make its revenue targets for the fourth quarter and full 2012 year – in part because of the jittery economy but mostly because of a bug in InfiniBand cables. In a statement, Mellanox …

How Facebook flipped the data centre hardware market

The rise of Facebook helped to ruin the data centre hardware market, caused IBM to sell its x86 business to Lenovo, spurred HP to embark on an ambitious "Moonshot" server, and encouraged Dell to go private. With the recent acquisition of WhatsApp, it's also adding momentum to the drive of OTT mobile messaging, which is …
Jack Clark, 20 Feb 2014
Funnel of cash. Credit: via SXC – http://www.sxc.hu/profile/Leonardini

Shape-shifting box shifter Systemax made cash... from non-IT kit

A write-off of deferred tax assets helped to widen losses at ailing Systemax during Q4 as the tanking consumer biz in North America more than offset sales growth in the Industrial Products division. It was an eventful end to another eventful year for the shrinking reseller, with turnover in the final three months of 2013 down 7. …
Paul Kunert, 05 Mar 2014