Displaying items by tag: Economy

Saturday, 06 October 2012 18:16

Samsung announced record profits


As expected, Samsung did excellent in the last quarter. They marked record profits of $7.3 billion, and even though there were many speculations that the iPhone 5 launch would ruin their success; obviously that's not what happened. These results are almost as twice as good they were the year before. It looks like the Galaxy S III and other high end Android devices were appreciated by the customers. They didn’t want to say much more on their profits as they will wait until October 26 for full-quarter results.

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Tuesday, 11 September 2012 22:20

HP increases layoffs to 29,000

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HP plans to sack even more people than it was previously announced. HP CEO, Meg Whitman has said that they will have to lay off 27,000 people to turn things around in the company, but apparently that was not enough and new numbers are saying that they will cut 2,000 more jobs. No explanations were given for this move, but it is possible that the increasing popularity of the tablet and smartphone market, where HP has nothing to offer, is scaring them. Additionally HP might feel that their personal computers just won’t be enough to compete with the new market. Don’t forget that HP is the largest PC maker in the world.

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Activision_logoActivision is withdrawing into itself as they are closing another gaming studio. Yesterday we heard that they are closing Radical games (developers of some of the Crash Badicoot titles and also Prototype). Activision/Blizzard has been working to consolidate their development teams (including removing high profile members of some teams) although the exact reasoning behind this is not certain. We do know that although gamers recognize the publishing/distribution companies they also know the game studios that games come from. Without these attacked to new games (and with the reputation that Activision is giving themselves) there is a chance that Activision/Blizzard will end up like EA Games.

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Data-CenterAMD is hard at work to try and cut back on operating costs. This is a smart move on their part as they will have to figure out a way to bounce back from the recent loss they posted. To save money they are working to cut down on their data centers. Currently AMD operates 12 geographically distributed data centers. These have costs associated with them that go beyond simply keeping the lights on.

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Friday, 28 October 2011 06:43

AMD Earnings Up 7% Over Q2, the PC Is Not Dead

17Over the last few months I have watched a few analysis articles hit the internet with comments about the “stale” PC market and how the desktop PC is dying. These predictors of doom and gloom have always been around and in many cases I have a feeling they are saying these things because they want you to believe them. The funny thing is that the reality of the PC market is quite different from these fairy tales. If you need proof of that you need look no further than the earnings results from the two main CPU manufacturers. Intel posted a record quarter and even AMD is profitable and managed an increase in revenue over last quarter.

AMD has finally started to turn things around on their own. For a little while they were running off of the settlement that they received from Intel and we watched with interest as they dipped back down from profit to loss. However they had a rebound in Q2 and managed a $61 million in net income in Q2. For Q3 AMD has seen a very nice improvement. Their total revenue was $1.69 Billion with a 7% new income increase of just over 7% bringing the Q3 income up to 97 Million. This is a HUGE improvement over Q3 2010 where they posted a $118 Million Dollar loss. Of course this was taken care of in Q4 by the Intel settlement which let AMD post their first positive quarter in something like 5 years.

AMD’s ATi division also saw improvement where they posted a net income of $12 Million. In Q2 this division was down and posted a $7 Million loss. Right now AMD is pointing toward the Llano APUs as the reason for this increase in cash. Another factor in this (according to the AMD press release) is an increase in adoption of the AMD platform in notebooks. They specifically mention Asus, Acer, Dell, Lenovo, HP and others saying that they have globally increased their offerings with AMD APUs.
Things do look up for AMD, but there is an interesting statement in their PR which leads me to think that all is not beer and pizza. Looking at their forecast AMD is predicting only a 3% growth with a 1-2% margin of error. This means that despite the launch of a new Opteron, the new FX Series CPUs and additional OpenCL adoption they are only expecting a 1% revenue increase in Q4. This is not what I would call confidence in newly launched products. We will see if AMD is able to pull off a better increase or if the launch of Intel’s next CPU will put a damper on their Q3 increases and end 2011 for AMD on a down quarter.

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