Reply to this post I think GoPro will end up being acquired. The difference between Fitbit and GoPro is that Fitbit has understood that the hardware is becoming irrelevant whereas GoPro has yet to understand this crucial fact. GoPro produced a reasonable set of results relative to substantially reduced expectations, but went on to delay...
Reply to this post E-commerce powerhouse fuels ecosystem investments. Alibaba reported good FQ4 15A results but sent the clear message that would be ramping up investments in its fledgling ecosystem. FQ4 15A revenues / EBIT were RMB24.2bn / RMB5.1bn nicely ahead of consensus at RMB23.6bn / RMB4.6bn. Its Chinese e-commerce platforms Tmall (B2C) and Taobao...
Reply to this post Fitbit is being forced to spend to stay ahead. Fitbit reported good Q1 16A results but cut guidance in order to ramp up spending placing unrealistic expectations of profitability in H2 2016. This is particularly worrying as there are clear signs that commoditisation is forcing the company to increase spending, hitting...
Reply to this post I see a shake out with only a handful surviving. Just as in 2011 when every man and his dog was building an app store, now everyone is trying to build an autonomous vehicle. Just as it was with app stores and every other technology craze before it, only a very...
Reply to this post Security issues highlight more pressing problems. Google is trying hard to fix the endemic security issues that continue to plague Android devices but unfortunately it is making almost no progress. Since August 2015, Google has been releasing monthly security updates to address the security flaws but there are two big problems....
Reply to this post Gap between ecosystem and hardware to increase this year. As the slowdown in the smartphone market is more severe than even I had expected, it is Xiaomi that is looking like it is in real trouble. Smartphone and ecosystem Q1 16A smartphone shipments look they have been flat or declined as...
Reply to this post Both companies being driven by new businesses. Amazon Q1 16A. Amazon reported mighty results as Amazon Web Services (AWS) grew by 64% YoY and contributed 55% of group EBIT despite only contributing 9% of total sales. Q1 16A revenues / EBIT / EPS were $29.1bn / $1.07bn / $1.07 compared to...
Reply to this post A stick in the eye for corporate governance. A great set of results was marred by the timely announcement of a share split that further strengthens the founders’ grip on the company to the detriment of all other owners. Q1 16A revenues / adj-EPS were $5.4bn / $0.77 compared to...
Reply to this post Cash flow is king when growth deserts. Apple FQ3 16A. Apple reported difficult FQ2 results but critically, iPhone shipments fell by far less than many had feared, confirming my view that this is the end of a cycle not a secular decline. FQ2 16A revenues and EPS were $50.6bn / $1.90...
Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.
HTC Q1 16A – Family silver.
Reply to this post HTC is selling the family silver to stay alive. HTC reported dreadful Q1 16A results as EBIT losses ballooned to 32% of sales while revenues fell 36% YoY and NT$5.1bn (37% of sales) of cash from operations was burned. HTC has continued to lose market share triggering the classic handset death...