Displaying items by tag: Finance
IBM experiences dip in revenues for third consecutive quarter
IBM has reported a 2.5% decrease in revenues for the third consecutive quarter this year.
For the third quarter of 2020, the US tech company reported $17.6 billion compared to $18 billion in the corresponding quarter last year.
However, their net income experienced a slight increase, amounting to $1.7 billion due to the company’s cost-cutting strategies, according to the earnings report.
Shares were reportedly down by 2.6% in after-market trades however, it experienced some growth in its cloud computing business. In fact, IBM shares are down 6% since the beginning of the year.
Samsung net profits down by 3% in Q1
Samsung has reported its financial results for the first quarter of 2020 which showed decreased profits due to the pandemic.
Huawei maintains steady growth in the enterprise market in FY 2019
Huawei has confirmed steady growth in the enterprise market, achieving a global sales revenue of USD12.8 billion—up 8.6% year-on-year.
Huawei's enterprise business has become one of the key drivers of the company's overall expansion. In the Middle East specifically, the company’s enterprise business group achieved exceptional results with sales revenue growing 24% year-on-year, making the region one of the top performers for Huawei globally.
As of 2019, more than 700 cities and 228 Fortune Global 500 companies have chosen Huawei as their digital transformation partner. In addition, Huawei's enterprise business has a network of more than 28,000 partners worldwide, which contribute up to 86% of the global revenue of the business group.
According to Huawei, the trust of these partners and customers has been essential to the company’s success, and Huawei will continue to partner with governments and enterprises to bring digital to every person, home and organization for a fully connected intelligent world.
Through ongoing R&D and investment in new ICT technologies such as 5G, AI, and cloud, today Huawei fully leverages the collaborative advantages of new technologies to accelerate product innovation, industry digitization, and intelligent development.
Moreover, the principle of "Being Integrated" has been well adopted in its enterprise business, so that success is shared with partners through fair, transparent, and simple partner policies.
Huawei also invested 15.3% of its 2019 revenue – or approximately USD18.8 billion – back into R&D in line with its long-term investment approach and commitment to provide technology innovations. Its total R&D spend over the past decade now exceeds USD$85.9 billion.
During 2019, Huawei leveraged the synergy among cloud, AI, and 5G to provide public cloud services and hybrid cloud solutions that are stable, reliable and sustainable.
HUAWEI CLOUD has launched more than 200 cloud services and 190 solutions, while more than 3 million enterprise users and developers currently use HUAWEI CLOUD to develop products and solutions.
Using Cloud as the base, Huawei has launched Huawei Horizon Digital Platform by integrating new ICT technologies including IoT, AI, big data, video, converged communications, and GIS to build a foundation for the future digital world.
According to leading independent market research firm Dell’Oro Group, Huawei ranked No. 1 in the share of the global Wi-Fi 6 indoor AP market, excluding North America between the third quarters of 2018 and 2019, through its provision of quality services for customers from various sectors such as education, retail, healthcare, and manufacturing.
In addition, in 2019, Huawei launched CloudEngine 16800, the industry's first data center switch built for the AI era, which has been commercially deployed in more than 150 enterprise data centers around the world.
The three OptiXs, namely OptiXtrans, OptiXaccess, and OptiXstar, have been adopted by over 3,800 companies across 158 countries and regions. According to a Gartner's report released in September 2019, Huawei's storage products took up the Leaders’ zone of the Magic Quadrant.
Huawei also released two flagship solutions for the enterprise market – HiCampus and HiDC– by relying on its cutting edge technologies in 5G, optical transmission, Internet Protocol (IP) networking, and AI technologies and making collaborative innovation across technological domains.
Huawei has a wealth of experience in helping governments and enterprises go digital. In areas such as smart city, campus, transportation, energy, manufacturing, and education, Huawei works with global partners to roll out innovative solutions and business models to create new value.
As of 2019, Huawei has partnered with more than 4,200 service providers serving over 50,000 customers around the world.
The company has participated in smart city projects in more than 200 cities across over 40 countries and regions, as well as assisting more than 1,000 financial institutions with digital transformation in terms of inclusive finance, data-driven service innovation, and open banking. Huawei serves more than 170 urban rail lines in over 70 cities worldwide, striving to build integrated transportation systems for global cities.
Building on the experience gained from its own digital transformation, Huawei has successfully built intelligent campuses for more than 300 customers. Through innovative ICT technologies, Huawei helps various sectors including manufacturing and energy reshape their manufacturing and value chains while boosting upgrade of their intelligent systems.
As part of powering enterprise partners and building a prosperous ecosystem, Huawei has established 13 OpenLabs worldwide to focus on the enterprise market. At these OpenLabs, partners receive support on the joint innovation of solutions, marketing, talent cultivation, finance, supply chains, and IT systems to continuously improve their capabilities and drive their transformation for shared success.
Committed to sharing its experience, technology, and talent cultivation standards, Huawei has worked with a huge number of educational authorities, universities, and other ecosystem players from around the world to build an open and favorable ecosystem to cultivate ICT talents and drive industry digitization.
All financial statements in the 2019 Annual Report were independently audited by KPMG, an international Big Four accounting firm.
Ericsson shares drop due to ongoing North American operator merger
Ericsson published its Q4 financial results which highlighted that the Swedish telecom vendor did not experience much growth.
The vendor stated that the protracted merger of T-Mobile US and Sprint were to blame for the 9% drop in North America.
However, despite this, Ericsson experienced plenty of growth in the North American region at the beginning of the year.
Ericsson CEO Börje Ekholm commented on this and stated, “Due to uncertainty related to an announced operator merger, we saw a slowdown in our North American business in Q4, resulting in North America having the lowest share of total sales for some time. However, the underlying business fundamentals in North America remain strong.”
The vendor also experienced 1% growth in Q4 and 4% in the overall Financial Year of 2019. Despite their lack of growth in North America, the company did quite well in other markets such as the Middle East and North East Asia.
Their Q4 growth gross margin accounted for 37.1% which is essentially in line with their 2020 target.
In the previous fiscal year, the vendor’s operating income was at a loss of 1.9 billion Swedish kronor and it is now valued at 6.1 billion kronor. Also, the adjusted operating income increased to 6.5 billion kronor compared it the respective quarter last year of 2.6 billion kronor.
There was a decline to 14.5 % in the networks operating margin, which the firm attributes to an increase in investment and the occurrence of the Kathrein acquisition.
Ekholm also added, “Operating income was impacted by increased operating expenses. The increase is related to the Kathrein business acquisition, increased investments in digitalization and added resources to strengthen security as well as our Ethics and Compliance program. For 2020 we expect somewhat higher operating expenses, which will not jeopardize our financial targets.”
Whereas their Q4 net sales increased by 4% and was valued at 66.37 billion kronor compared to the respective quarter last year which (63.81 billion kronor). Sales were adjusted due to currency and comparable units and it was reported that there was a 1% increase year-over-year.
Ericsson has stated that they will be proposing a dividend for 2019 of 1.50 kronor per share at their
Ericsson has stated that at the Annual General Meeting, they will be proposing a dividend of 1.50 kronor per share for 2019. This is an increase compared to the 1.00 kronor per share from 2018.
EU fines Qualcomm over alleged antitrust violation
US chipmaking giant Qualcomm has been fined 242 million euros by the EU for an antitrust violation.
The fine is the second penalty imposed on the company by Brussels, the previous fine being 997 million euros back in 2018.
“Our investigation found that Qualcomm abused” its dominant position in the market between mid-2009 and mid-2011 by “engaging in predatory pricing,” read the statement issued by the EU.
According to the EU’s case, the chips in question are “key components so that mobile devices can connect to the internet” and that “Qualcomm sold these products at a price below cost to key customers with the intention of eliminating a competitor,” said EU antitrust commissioner Margrethe Vestager.
The EU also stated that Qualcomm sold chipsets to Huawei and ZTE, strategic customers which are Chinese tech giants, “with the intention of eliminating Icera, its main rival”.
Qualcomm said in a statement that it would appeal this decision as a means of exposing “the meritless nature” of it.
The EU fine, according to the chipmaking giant’s General Counsel, Don Rosenberg, is “unsupported by the law, economic principles or market facts, and we look forward to a reversal on appeal.”
Rosenberg added that the Chinese tech giants chose Qualcomm because “rival chipsets were technologically inferior”.
Qualcomm was also recently fined in Korea and Taiwan for antitrust concerns. In fact, the chipmaker finalized a two-year-long legal battle with Apple over royalties.
Trump has criticized Vestager’s cases against US tech giants such as Amazon, Google and Apple. In fact, Google was previously given 3 major fines from the European Commission amounting to a total of 8.25 billion euros.
SoftBank loses $16bn following Uber IPO
The market value of SoftBank Group, Uber’s biggest stakeholder, has decreased by $16 billion following Uber’s disappointing initial public offering.
Vodafone announces 7.6bn euro annual loss
Vodafone, the British Telecom giant, announced Tuesday its losses for the fiscal year which ended in March 2019 of 7.6 billion Euros ($ 8.5 billion).
US tech giant edges towards trillion-dollar valuation as profits soar
US technology behemoth Microsoft is edging nearer a trillion-dollar valuation after its profits soared in the first-quarter of 2019. Microsoft enjoyed the increase in its revenues largely because of its cloud and business services continue to resonate with the market.
Profits’ in the opening quarter climbed by 19% to $8.8bn and that represents an increase of 14% from the same period a year earlier. Microsoft also saw its shares gain 3% on the New York Stock Exchange which pushes it closer to a $1 trillion valuation.
By the close of the bell on Wall Street, Microsoft was valued at $960m, which places them just behind Apple and slightly ahead of Amazon.
The financial results indicate that Microsoft is now becoming increasingly reliant on cloud computing and other business services which now drive its earnings, in contrast to its earlier days when it focused on consumer PC software.
“Leading organizations of every size in every industry trust the Microsoft cloud," chief executive Satya Nadella said in a statement.
Commercial cloud revenue rose 41 percent from a year ago to $9.6 billion, which now makes up nearly a third of sales, Microsoft said.
In addition to this, it was disclosed that some $10.2 billion in revenue came from the productivity and business services unit which includes its Office software suite for both consumers and enterprises, and the LinkedIn professional social network.
The more personal computing unit which includes its Windows software, Surface devices and gaming operations generated $10.6 billion in the quarter.
Nokia to expand its transport portfolio in effort to support operators 5G investment
In advance of Mobile World Congress, Nokia today announces a raft of enhancements to its Anyhaul transport portfolio that help operators prepare their networks for 5G by delivering throughput speeds of up to 25 Gbps to base stations.
The launches span microwave, optical, IP and broadband technologies within a carrier Software Defined Networking (SDN) transport architecture. This simplifies the integration of transport with cloud-based radio access and core networks, thereby enabling an automated end-to-end 5G network slicing and service provisioning system.
Nokia Anyhaul is the industry's most extensive range of transport solutions. These solutions can be rapidly and dynamically provisioned to support the massive connectivity, extreme low latency and very high throughput demands of 5G services.
Programmability and automation dynamically create transport network slices to quickly and cost-effectively match diverse application and user needs with end-to-end service delivery guarantees.
The Nokia Anyhaul portfolio enables operators to deploy the optimal mix of transport technologies to create a flexible fabric that matches their unique network and business needs.
The new Nokia 1830 Versatile WDM Module (VWM) Translation Line Unit (TLU)-200 provides high density wavelength translation at 10 Gbps and 25 Gbps speeds. Purpose-built for Cloud RAN and Edge Cloud requirements, it simplifies operations and improves reliability of fronthaul connectivity for 4G Common Public Radio Interface (CPRI)/Open Base Station Architecture Initiative (OBSAI) and 5G eCPRI data.
A new, compact interconnect router, the Nokia 7250 IXR-e, is purpose-built to support 5G and edge cloud requirements at or near base stations with 1/10/25/100 GE interfaces. The 7250 IXR-e features a compact architecture with efficient cooling and optimized space efficiency for minimal installation costs. It complements the previously released 7250 IXR-R6, which also supports 5G requirements and 1/10/25/100 GE interfaces.
A proof of concept of Nokia Broadband Anyhaul 25G Passive Optical Network (PON) demonstrates the viability of building on existing fiber infrastructure to offer 25 Gbps speeds. Co-existing with 2.5G and 10G PON technologies, 25G PON enables more radio access sites to be connected on the same fiber to reduce costs.
Nokia has successfully trialed 25G PON proof of concept with T-1 operators in North America and Japan in January 2019.
Jimmy Yu, Vice President at Dell'Oro Group, said: "Mobile backhaul has always been done with a variety of transport technologies to balance the needs of performance, time, and economics. This will continue with 5G, and for this reason, operators will need an assortment of transport technologies-microwave, optical, IP and PON-that suit their unique requirements in 5G fronthaul and backhaul. The rollout of 5G has just started this year and if our predictions are correct, demand for 5G backhaul transport systems (not including fiber) will begin ramping in a year's time and surpass $1 billion of annual sales in the following two years."
Phil Twist, VP of Networks Marketing and Communications, at Nokia said: "Our Anyhaul portfolio is a key element of the Nokia 5G Future X architecture, which equips our customers to take advantage of the promise of this next generation of network technology. Nokia Anyhaul has been deployed globally and is now being selected in countries such as the US, Japan, China, and South Korea where we are helping the fast-movers transform to 5G. The expertise and invaluable best practices we gain will further simplify and reduce risk for other operators as they move to 5G."
Spike in revenue for Qualcomm as India launches 4G
As India prepares itself for the transition to 4G, Qualcomm has observed a 23% increase of revenue due to a demand surge for phones.
The American chipmaker powers more than half of all smartphones sold in India and posted sales of Rs 5,426 crore locking in a net profit of Rs 518 crore in FY18, financials sourced from research platform Tofler. The company’s growth slowed down from a year ago when it grew 39%, but has nearly doubled sales and profit over the past three years.
“There are two aspects that have stood out for India; one, this is a growing market for smartphones and two, the telecom carriers have also rapidly adopted 4G, which has transitioned this market totally from 3G to 4G and now is moving the 2G to 4G,” said Rajen Vagadia, country manager of Qualcomm India.
The telecom industry in the world’s second-most-populous nation is transiting rapidly to 4G data technology after the entry of RelianceNSE -0.39 % Jio. The Indian mobile network operator started services in September 2016, and helped spur data consumption in the country with its 4G-only network, meaning rivals Airtel and Vodafone were forced to slash its tariffs.
India mobile phone shipment crossed 300 million units for the first time ever with smartphones capturing almost 44% of the total volumes in CY 2017.
San Diego-based Qualcomm said it has evolved over the last few years supporting end-to-end product engineering, contributing to technology innovation in areas such as 4G, IoT and now 5G.
“This transition has been fuelled by solutions that Qualcomm provided, including the explosive growth of the Jio 4G feature phone at one end of the spectrum while our partners like Xiaomi have brought premium tier Snapdragon 845 at affordable prices,” Vagadia added.
Qualcomm’s Indian revenue doesn’t account sale of all its products in India however. A bulk of its transactions are with global suppliers in the US and China, which in turn market them in the country.
Shobhit Srivastava, research analyst, Mobile Devices and Ecosystems, Counterpoint Research says that most of the smartphones featuring Qualcomm’s Snapdragon chipset are in the mid and high tier segment, which explains the company’s billion dollar sales value in India.
”Qualcomm India can further grow its revenues given the OEMs (original equipment manufacturer) and ODMs in India start sourcing products directly with the advancing manufacturing and designing ecosystem in India,” he said in an interview to The Economic Times.
Qualcomm has helped bring features such as voice calls over a 4G LTE network and voice over Wi-Fi for consumers in India, by working closely with Indian cell carriers. The chipmaker said most companies were looking to launch major global technologies concurrently in India, making the country the first or second market for such rollouts.