Google And Friends; How They Did Last Quarter?
The past year have been quite an exciting year for the smartphone and gadget industry. We see the acceleration in the rise of China based manufacturers like Xiaomi and Lenovo. We also saw some deterioration and fall of some of the largest companies like Samsung and Nokia. Definitely an interesting year then if we have to describe it. However the outlook is not the whole story of how the industry does in a year. So here we look at some of the quarterly reports that some of these players in the industry has to offer.
As of the title, we of course start with Google. Well, not Google anymore as we know it; now it is Alphabet. In the fourth quarter of 2015 they saw a whoping US$21.3 billion (approx. MYR89.818 billion) in revenue. From that revenue they made US$5 billion (approx. MYR21.084 billion) in profit which is one billion more than in the third quarter of the same year. Comparatively though it does not look like a much bigger improvement compared to 2014’s US$4.675 billion (approx. MYR19.713 billion) made in the fourth quarter. Of course with the year 2015 ended, that was not the whole story. Their 2015 revenue is reported at US$74.5 billion (approx. MYR314.15 billion) which is an increase of 12.9 percent over 2014 and creating a total profit of US$23.4 billion (approx. MYR98.673 billion) for the year.
As for one of Google’s friends, we take a look at one HTC. HTC as we know has not been doing well. In fact they have been stumbling again and again for a while now but somehow manages to survive too. With so much drama going on with HTC it is no wonder that it also shows in numbers. In the final quarter of 2015 HTC has reported a net loss of US$101 million (approx. MYR426.863 million) even with a 20% increase of revenue compared to the third quarter of the same year. Despite that they still could not quite match their own performance in 2014. However with this sort of report the top brass of HTC actually is quite optimistic in saying that they should see some turn around within the second quarter of 2016. We will be watching though.
Now it is not all gloomy stories with Google’s partners. One of its partners that have been doing well is Lenovo. Not too long ago in the year 2015 Lenovo bought Motorola off Google’s hands and while that acquisition costed Motorola US$2.91 billion (approx. MYR 12.252 billion). That investment however is being put to full use as their mobile division is looking to announce some profit numbers as soon as 2016. They have not released their fourth quarter results yet but in their third quarter of 2015 quarter despite looking at a year-on-year shipment decline of 18.1 percent from 20.2 million last year. So considering that they forked out so much to actually buy Motorola, getting their mobile division to break even in 2015 is actually no small feat.
There are more quarterly reports out there that is basically pointing to a certain decline in the smartphone market and also showing some slow down and scaling down of operations in certain manufacturers but that does not mean that there are any lack of interest in users. 2016 will be the year where plenty of manufacturers that have lagged behind like HTC in 2015 will try to mount a comeback. As we are publishing Mobile World Congress is happenning so we do expect some big announcements and interesting concepts and releases from most of the Android manufacturers.