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Mobile Leadership Strategies

Search Giant Google Records 20 Percent Drop in Profit in Q3

Daily Insight | Carl Howe | October 19, 2012

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Google accidentally released its Q3 earnings a few hours early, and the results were shocking to most; the tech giant reported a 20 percent drop in profits, resulting stock prices falling 9 percent in the minutes following the release.

 

The Washington Post is reporting that the earnings releases were posted to the Securities and Exchange Commission Web site a few hours earlier than anticipated. Google ceased trading on NASDAQ following the release while it finalized the document, which was initially posted with a note stating it was “Pending Larry quote.” Google reported revenue of U.S.$11.3 billion in Q3, which was up 19 percent year-on-year, but net income fell to U.S.$2.18 billion. Part of the company’s decline is blamed on foreign currency exchange rates, while another part is blamed on Google’s Motorola unit, which reported an adjusted operating loss of U.S.$151 million.

 

Yankee Group Research VP Carl Howe comments

 

“I think Google is discovering that its advertising-supported business model has limits to growth. The price that advertisers pay per click declined 15 percent over the same quarter last year, and that was the fourth quarter in a row where that figure declined. Because advertising is what pays the bills for everything else at Google, that decline has to be creating red flags for its business.

Google also is learning that the mobile smartphone business is a tougher business to dominate than it expected. While Android has captured the majority of smartphone shipments, Google had been making more money off Apple’s iPhone owners than Android owners, and Apple is in the process of migrating those owners away from Google services. Worse, Google’s own Android manufacturing arm, Motorola Mobility, is losing money selling Android phones. While Android may be capturing the lion’s share of mobile smartphone market, the fact that Google is not making money in that market has to be considered a Pyrrhic victory at best.”

Mobile and Connected Device Strategies

With PC Sales Stagnating, Acer Joins Mobile Market

Daily Insight | Boris Metodiev | October 19, 2012

Sales numbers for PCs have dipped in recent years as a result of the growing popularity of smartphones and tablet computers. To combat this trend, a well-known manufacturer of desktop and laptops has jumped in to the mobile fray.

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Mobile Broadband Strategies

UK Operators Form Joint Venture to Speed Up 4G Deployment

Daily Insight | Declan Lonergan | October 19, 2012

Four of the major operators in the U.K., including Everything Everywhere and Vodafone, have come together to form a jointly controlled company called Digital Mobile Spectrum Limited (DMSL) to speed up the delivery of 4G LTE services.

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Mobile Application and Cloud Strategies

Firefox Marketplace App Store Open for Business

Daily Insight | Jason Armitage | October 19, 2012

Mozilla has opened up the first iteration of its Firefox Marketplace for Android device owners and developers, hoping to get solid feedback from early adopters about the app store’s design, usability, performance, reliability and content.

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Mobile Marketing and Commerce Strategies

Paymobile Acquires Mobile Payments Platform

Daily Insight | Nick Holland | October 19, 2012

 

 

Canada-based financial services provider Paymobile recently announced it has acquired mobile payments platform Zoompass, which was initially owned and operated by EnStream—a consortium of Canadian mobile carriers Bell, Rogers and Telus.

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