Tag Archives: Company Earnings

Samsung’s semiconductor business posted massive losses for Q1 2023

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Samsung's earnings results for the first quarter of 2023 are in, and they're a massive departure from the same period's last year wherein it reported a steep rise in profit. The tech giant has posted a consolidated revenue of KRW 63.75 trillion (US$47.5 billion) and an operating profit of only KRW 0.64 trillion (US$477 million), mostly because its semiconductor business has (according to Reuters) reported record losses. Samsung's DS division, which operates its semiconductor and display businesses, reported a consolidated revenue of KRW 13.73 trillion (US$10.2 billion). However, it also posted KRW 4.58 trillion (US$3.4 billion) in operating losses for the first quarter.

Overall demand for memory products has been decreasing over the past months, with the division reporting only KRW 0.27 trillion (US$201 million) in operating profit for the fourth quarter of 2022. This quarter, Samsung blamed ongoing inventory adjustments, as well as the economic slowdown and the weakened customer spending that resulted from it for the decrease in overall demand. That said, the company expects demand to gradually recover in the second half of the year as customers' inventory levels get depleted.

Despite the loss in profits overall, Samsung's mobile division performed well in the first quarter. The company's MX and Networks businesses, which cover both mobile devices and telecommunication network equipment, posted KRW 31.82 trillion (US$23.7 billion) in consolidated revenue and KRW 3.94 trillion (US$2.9 billion) in operating profit. Samsung explained that while there was a low demand for smartphones overall, the market for premium devices grew year-over-year. The division's positive performance was apparently made possible by the strong sales of the Galaxy S23 series, specifically the Galaxy S23 Ultra. 

Going forward, the company's MX business will focus on supporting Galaxy S23 sales while boosting the marketing for its foldable phones to increase awareness about the devices before the next generation drops. Samsung is expected to unveil its next foldable devices in the second half of the year, possibly in August likes its previous launches. 

This article originally appeared on Engadget at https://www.engadget.com/samsungs-semiconductor-business-posted-massive-losses-for-q1-2023-053610092.html?src=rss

Facebook is still growing amid Meta’s ‘year of efficiency’

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Mark Zuckerberg’s “year of efficiency” doesn’t seem to be affecting Facebook’s growth. Meta’s social network added 37 million users during the first quarter of the year, bringing total daily users up to 2.037 billion. Meanwhile, the number of daily users across the company’s “family of apps” rose to over 3 billion users for the first time in company history.

The company reported the growth in its first-quarter earnings report for 2023, the first since Zuckerberg announced the company was focusing on “efficiency” amid an economic downturn that has led the company to shed thousands of jobs. That shift seems to be showing some signs of success, as Meta reported $28.6 billion in revenue for the quarter, up 3 percent from last year and the first revenue growth in nearly a year for Meta.

Despite the boost, though, Zuckerberg confirmed that more layoffs are still scheduled to take place next month. “Even as our financial position improves, I continue to believe that slowing hiring, flattening our management structure, increasing the percent of our company that is technical and more rigorously prioritizing projects will improve the speed and quality of our work,” he said during a call with analysts.

Reality Labs also continues to take major losses, losing just under $4 billion for the quarter. That’s a bit less than the $4.3 billion the company lost last quarter, but Meta has said it expects 2023 losses for its metaverse division to top the $14.3 billion it lost last year.

During the call, Zuckerberg said the company is still prioritizing its massive investment in the metaverse, even as it increasingly turns its attention to generative AI. “A narrative has developed that we're moving away from focusing on the metaverse vision,” Zuckerberg said. “So I just want to say upfront that that's not accurate. We've been focusing on both AI and the metaverse for years now, and we will continue to focus on both.” He added that the company was preparing to launch its “next-generation consumer virtual and mixed reality device” later in the year.

Meta’s CEO also talked more about his plan to create “AI agents” and other generative AI tools for the company’s apps. “I think that there's an opportunity to introduce AI agents to billions of people in ways that will be useful and meaningful. We're exploring chat experiences in WhatsApp and messenger, visual creation tools for posts on Facebook and Instagram and ads, and, over time, video and multimodal experiences as well.”

This article originally appeared on Engadget at https://www.engadget.com/facebook-is-still-growing-amid-metas-year-of-efficiency-222320433.html?src=rss

Spotify reaches more than half a billion users for the first time

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Spotify has released its earnings report for the first quarter of 2023 and the headline figure is the number of users the company has. As of March 31st, 515 million people were using the audio streaming service. That's the first time Spotify has had more than half a billion users. Q1 was also Spotify's second-biggest quarter for user growth to date — its audience increased by five percent from the previous quarter and 22 percent year over year. The user base grew by 26 million, which is 15 million more than Spotify had expected. The company said it saw growth in both developed and developing markets, as well as almost every age group.

Most of that growth is based on folks who use the free, ad-supported version of the Spotify service. Premium subscriptions didn't keep pace with the overall growth, as they rose by two percent from the previous quarter and 15 percent year over year from 205 million to 210 million. Still, premium subscribers grew by 3 million more than Spotify had indicated in its guidance to investors.

Overall, Spotify posted a net operating loss of €156 million ($172 million) for the quarter. That's far more than the €6 million ($6.6 million) loss it saw in the first quarter of 2022, though it's an improvement over the €270 million ($297 million) Spotify lost the previous quarter.

While overall revenue was up by 14 percent year over year from €2.66 billion ($2.93 billion) to €3.04 billion ($3.34 billion), it dipped by four percent from the previous quarter. Revenue from paid subscribers didn't change significantly from Q4 2022, but it dropped by 27 percent on the ad-supported side from €449 million ($494 million) to €329 million ($362 million) — though revenue from free users rose by 17 percent year over year. The quarter-to-quarter drop is perhaps a result of advertisers tightening their belts somewhat, leading to lower ad spend.

Advertisers aren't the only businesses trying to rein in costs. Spotify, like many other major tech companies in recent months, has laid off a sizable proportion of its staff. In January, the company laid off six percent of workers, which equates to around 600 people based on the 9,800 that Spotify employed as of the end of 2022.

Additionally, Spotify seems to be placing a bigger focus on the core parts of its business. It recently announced plans to shut down both its live audio app, Spotify Live, and Heardle, the Wordle-style song-guessing game it bought last summer.

This article originally appeared on Engadget at https://www.engadget.com/spotify-reaches-more-than-half-a-billion-users-for-the-first-time-142818686.html?src=rss

DJI’s Mavic 3 Pro comes with a triple-camera setup

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DJI has unveiled its new flagship consumer drone, the Mavic 3 Pro, with a triple-camera setup that includes a new 70mm lens designed for "powerful subject framing." It also includes a new 10-bit D-Log M color mode, improvements in the tele cameras, and ProRes capture on the Mavic 3 Pro Cine option. It's the company's fourth Mavic 3 drone, joining the Mavic 3, the Mavic 3 Classic and the Mavic 3 Enterprise models. 

Like the Mavic 3, it's available in regular and Cine models, with the latter having advanced features for filmmakers like Apple ProRes capture (ProRes 422 HQ, ProRes 422, and ProRes 422 LT), a 1TB SSD drive and a 10Gbps lightspeed data cable. However, you'll pay a premium of nearly $1,000 to get those.

DJI's Mavic 3 Pro comes with a triple-camera setup
DJI

The new 70mm camera has a 1/1.3-inch sensor that's the same size as on the Mini 3 Pro. Though considerably smaller than the 4/3 chip on the main Hasselblad camera, DJI says the camera is designed for a "range of different scenarios from framing intriguing buildings to cars in commercial shoots." That comment indicates that the quality should be better than the 7x tele camera. It can handle 48-megapixel (MP) high-res or 12MP low light photos, along with 4K/60fps video. 

Like the main camera, it supports a new log format called D-log M along with DJI's original D-Log. D-Log M is designed to deliver "natural color gradations with delicate details" even in high-contrast situations like sunsets, the company says. At the same time, it's easier to grade than typical log footage, according to DJI. It can shoot up to 10-bit 4:2:2 ProRes video on the Mavic 3 Pro Cine model and 10-bit 4:2:0 (H.264/H.265) on the regular model. 

DJI's Mavic 3 Pro comes with a triple-camera setup
DJI

DJI has also improved the 7x (166mm equivalent) tele camera, boosting the aperture from f4.4 to f3.4, which should make it considerably better in low light. It also offers boosted video specs, up from 4K at 30p on the Mavic 3 to 4K/60fps.

Aside from those improvements, it's much the same as the Mavic 3. The main 4/3 Hasselblad camera can shoot video at up to 5.1K at 50fps or DCI 4K at 120fps, with the new D-Log M mode, along with D-Log and HLG options. As before, it can capture 10-bit 4:2:2 ProRes (Mavic 3 Pro Cine) and 10-bit 4:2:0 H.264/H.265 video on the Mavic 3 Pro. 

DJI's Mavic 3 Pro comes with a triple-camera setup
DJI

It allows up to 43 minutes of flight time, roughly the same as before. You'll also get DJI's omnidirectional sensing and APAS 5.0 obstacle protection, with eight wide-angle vision sensors and a high-performance vision computing to engine "to precisely sense obstacles in all directions and plan a safe flight to avoid them," DJI says. Its DJI O3+ transmission system can transmit a 1080p/60fps HD live feed at high frame rates at a distance of up to 15 km (10 miles), though considerably less in Europe. 

The Mavic 3 Pro also offers key AI features seen on the Mavic 3 and other models. Among those is ActiveTrack 5.0 designed to track a subject while avoiding obstacles, Spotlight (moving the drone around the subject), and Point of Interest (allows the drone to circle around the subject while keeping it centered in the frame). 

DJI's Mavic 3 Pro comes with a triple-camera setup
DJI

In addition, it includes features designed for creators like MasterShots 4, QuickShots 5 with diverse camera movements like Dronie, Rocket, Circle and Helix, and Panorama 6, designed to take a 100 MP photo. It also comes with a time lapse mode. 

As for the price, the Mavic 3 Pro is only a bit more expensive than the Mavic 3's current $2,049 starting price. The Mavic 3 Pro with a DJI RC starts at $2,199, while the Fly More combo with the DJI RC, three intelligent flight batteries, a charging hub, carrying bag and one ND filter set is $2,999. The same thing with the DJI RC Pro remote (the high-end one with a screen) is $3,889, and the Mavic 3 Pro Cine Premium Combo (with the latter accessories) is $4,799. It's now available to order with shipping starting in May. 

This article originally appeared on Engadget at https://www.engadget.com/djis-mavic-3-pro-comes-with-a-triple-camera-setup-130001265.html?src=rss

DJI’s Goggles Integra has an integrated battery for improved ergonomics

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One of the biggest criticisms of DJI's otherwise excellent Avata FPV drone was around the Goggles 2, which lacked comfort and forced you to tether to a battery. Now, DJI has unveiled the Goggles Integra, a new model designed for the Avata that offers an integrated battery, improved ergonomics and new flight control features. The company also announced the RC Motion 2 controller with an upgraded joystick and controls.

The Goggles Integra use a new integrated design that merges the headband and battery, eliminating the annoying connecting cable on the last model. At the same time, DJI promises that the headband is "light, balanced and incredibly comfortable," while offering up to two hours of connecting time. It uses DJI's OcuSync O3+, that provides a 50Mbps video feed with up to 6.2 miles of range and 30-millisecond latency. It has a built-in GPS that lets you fly with no need to connect to a smartphone. 

DJI's Goggles Integra have an integrated battery for improved ergonomics
DJI

Unfortunately, the Goggles Integra lack the built-in diopter range found on the Goggles 2, and are too small to accommodate eyeglasses. Instead, they come with interchangeable lenses, meaning they're less flexible for users who need eye correction than the Goggles 2. And as before, when you take them off to see the drone, you'll need to put your glasses back on. With the battery cable gone, though, it's less awkward to put the headset on and take it off.

Another key difference with the Goggles 2 is that there's no Bluetooth or WiFi communication, DJI told me. However, like the Goggles 2, you can stream simultaneously to the headset and a smartphone. 

Along with the new headset, DJI introduced the RC Motion 2 as an update to the original RC Motion controller. It uses the same motion-sensing tech, but comes with an improved joystick that protrudes (rather than being flush as before) for more traditional operation. 

DJI's Goggles Integra have an integrated battery for improved ergonomics
DJI

It also has an updated accelerator with a reverse function to support multidirectional flight. That includes vertical, backward and sideways motion, "making it easier to adjust the direction or choose a suitable place to land," DJI wrote. On the side is a new Fn dial (replacing the tilt switch) that lets you adjust the camera's ISO, shutter and other parameters without the to interact with the goggles. 

The new products show that DJI is being responsive to users, but it's unfortunate that the Goggles Integra lacks several key features from the $649 Goggles 2 — even though it's $150 cheaper. The Goggles Integra and RC Motion 2 are now available for $499 and $239 respectively. You can also get them in the Avata Explorer Combo that includes the Goggles Integra, DJI RC Motion 2, and DJI Avata for $1,278. If you need the diopter adjustment range and WiFi/Bluetooth features, the Pro-View Combo with the Goggles 2, DJI RC Motion 2, and DJI Avata is available for $1,428. 

Update 3/28/2023 8:52 PM: The article has been updated to state that it's possible to stream to the Goggles Integra and a smartphone at the same time. 

This article originally appeared on Engadget at https://www.engadget.com/djis-goggles-integra-has-an-integrated-battery-for-improved-ergonomics-130036871.html?src=rss

DJI’s Goggles Integra has an integrated battery for improved ergonomics

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One of the biggest criticisms of DJI's otherwise excellent Avata FPV drone was around the Goggles 2, which lacked comfort and forced you to tether to a battery. Now, DJI has unveiled the Goggles Integra, a new model designed for the Avata that offers an integrated battery, improved ergonomics and new flight control features. The company also announced the RC Motion 2 controller with an upgraded joystick and controls.

The Goggles Integra use a new integrated design that merges the headband and battery, eliminating the annoying connecting cable on the last model. At the same time, DJI promises that the headband is "light, balanced and incredibly comfortable," while offering up to two hours of connecting time. It uses DJI's OcuSync O3+, that provides a 50Mbps video feed with up to 6.2 miles of range and 30-millisecond latency. It has a built-in GPS that lets you fly with no need to connect to a smartphone. 

DJI's Goggles Integra have an integrated battery for improved ergonomics
DJI

Unfortunately, the Goggles Integra lack the built-in diopter range found on the Goggles 2, and are too small to accommodate eyeglasses. Instead, they come with interchangeable lenses, meaning they're less flexible for users who need eye correction than the Goggles 2. And as before, when you take them off to see the drone, you'll need to put your glasses back on. With the battery cable gone, though, it's less awkward to put the headset on and take it off.

Another key difference with the Goggles 2 is that there's no Bluetooth or WiFi communication, DJI told me. However, like the Goggles 2, you can stream simultaneously to the headset and a smartphone. 

Along with the new headset, DJI introduced the RC Motion 2 as an update to the original RC Motion controller. It uses the same motion-sensing tech, but comes with an improved joystick that protrudes (rather than being flush as before) for more traditional operation. 

DJI's Goggles Integra have an integrated battery for improved ergonomics
DJI

It also has an updated accelerator with a reverse function to support multidirectional flight. That includes vertical, backward and sideways motion, "making it easier to adjust the direction or choose a suitable place to land," DJI wrote. On the side is a new Fn dial (replacing the tilt switch) that lets you adjust the camera's ISO, shutter and other parameters without the to interact with the goggles. 

The new products show that DJI is being responsive to users, but it's unfortunate that the Goggles Integra lacks several key features from the $649 Goggles 2 — even though it's $150 cheaper. The Goggles Integra and RC Motion 2 are now available for $499 and $239 respectively. You can also get them in the Avata Explorer Combo that includes the Goggles Integra, DJI RC Motion 2, and DJI Avata for $1,278. If you need the diopter adjustment range and WiFi/Bluetooth features, the Pro-View Combo with the Goggles 2, DJI RC Motion 2, and DJI Avata is available for $1,428. 

Update 3/28/2023 8:52 PM: The article has been updated to state that it's possible to stream to the Goggles Integra and a smartphone at the same time. 

This article originally appeared on Engadget at https://www.engadget.com/djis-goggles-integra-has-an-integrated-battery-for-improved-ergonomics-130036871.html?src=rss

Apple’s record service revenue couldn’t make up for falling hardware sales

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As many Apple watchers have predicted, the company's financial results this quarter are a break from the last few years of nonstop growth. The iPhone maker reported a revenue of $117.2 billion for its first fiscal quarter (ended December 2022), which is five percent down year over year, marking the first time Apple's revenue is down since 2019. 

There are a couple of bright spots in the company's performance, namely in its setting a revenue record of $20.8 billion in its Services business and hitting more than 2 billion active devices in its installed base. All-time revenue records were also set in markets like Canada, Indonesia, Mexico, Spain, Turkey and Vietnam.

In a statement, CEO Tim Cook said "As we all continue to navigate a challenging environment, we are proud to have our best lineup of products and services ever, and as always, we remain focused on the long term and are leading with our values in everything we do."

On its earnings call, Cook said there were three main things that impacted revenue: the "challenging macroeconomic environment", foreign exchange issues and COVID-related supply constraints that led to delays in the ship times of iPhone 14 Pro and Pro Max models. "Production is now back to where we want it to be," he added.

Apple's decline in revenue is in line with a general slump in the tech industry, with Meta having just reported revenues that are 4 percent down from the previous year. Alphabet is also seeing a slowdown in growth this quarter, and while Microsoft saw its revenue climb, its earnings missed expectations and profits fell by 12 percent. Amid the economic downturn, tech companies havebeenlaying off significant portions of their workforce, though Apple doesn't appear to have made similar moves at the moment.

Alphabet’s revenues are still growing, but just barely

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It's no secret that the huge tech companies are still making money hand over fist, but there's also a noticeable slowdown going on. Google's parent company Alphabet is not immune — the company just reported its earnings results for Q4 of 2022, and just barely grew revenue year over year. The $76 billion the company pulled in during the quarter is up only one percent from Q4 of 2021. 

Google's ad business is the backbone of the company, and revenue slipped there by about 3.5 percent compared to a year ago. But eight percent growth in the "other" category (which includes products like Google and Nest hardware and revenue from the Play Store) and 32 percent yearly growth in in Google Cloud made up for those ad losses. Overall profits, meanwhile, dropped significantly: Quarterly net income of $13.6 billion is down 34 percent year-over-year.

Of course, the backdrop for all this is that Google announced a few weeks ago that it is laying off about 12,000 employees; that makes up about six percent of the company's overall workforce. At the time those layoffs were announced, we didn't yet know what Google's financials for last quarter looked like, but now we can see that things are slowing down. 

That's all relatively speaking, though. Net income of $60 billion for 2022 as a whole was down significantly compared to the $76 billion in profit Alphabet made in 2021 — but it's still far ahead of the $40 billion the company pulled in for 2020. It looks like the big numbers Alphabet posted in 2021 weren't exactly sustainable, and obviously we don't yet know what 2023 will bring. But we'll be tuning into the company's call with investors, which starts at 4:30PM ET, to see what additional details CEO Sundar Pichai can share about the state of Alphabet in the year to come.

Samsung’s profits plunged in 2022 due to weak chip and smartphone demand

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Samsung has revealed a sharp decline in profit for 2022, mainly due to the weak demand for its chips and smartphones, which are the company's main moneymakers. The Korean tech giant has posted KRW 302.23 trillion (US$245.4 billion) in annual revenue, which is a new record high for the company, in its latest earnings report. But it has also reported an operating profit of KRW 43.38 trillion (US$35 billion) for all of 2022, down KRW 8.5 trillion (US$6.9 billion) from the year before. 

"The business environment deteriorated significantly in the fourth quarter due to weak demand amid a global economic slowdown," the company explained. While the tech giant's Foundry business posted an increase in profit due to customer and application diversification, its semiconductor business performed poorly as a whole. There was weak demand for its chips overall, as customers adjust and reduce their inventory in the face of economic uncertainties. Its chips' prices also dropped, mostly likely due to a surplus in unsold inventory, contributing to the business' decline in earnings for the year. 

In the fourth quarter of 2022, Samsung's semiconductor business earned KRW 20.07 trillion (US$16.3 billion) in consolidated revenue but only KRW 0.27 trillion (US$219 million) in operating profit. For comparison, it posted a consolidated revenue of KRW 26.01 trillion (US$21.6 billion in early 2022's conversion rates) and an operating profit of KRW 8.84 trillion (US$7.35 billion) for Q4 2021. Samsung is bracing for this downward trend to persist throughout the next few months, though it expects demand for its semiconductors to pick up in the second half of the year. 

Similarly, the demand for smartphones remained weak in the fourth quarter of 2022. Sales for Samsung's more affordable phones went down, and while flagship sales held up to market expectations, they're still lower than previous quarters'. The company expects demand for mass market smartphones to weaken even further in 2023 "due to persistent macroeconomic conditions." But since it also expects demand for premium devices to stay solid, it vows to strengthen "the competitiveness of its premium flagship products." To note, Samsung will hold its first Unpacked event of 2023 on February 1st where it will most likely unveil its next flagship phone, the Galaxy S23. 

Nintendo lowers Switch sales forecasts but still expects a healthy year

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Nintendo has announced a solid quarter of earnings, with revenue for the quarter at 349.5 million yen ($2.38 billion) and a 118.7 million yen ($809.6 million) operating profit. That's up by 15.9 and 18.5 percent over last year, largely in part due to a weaker yen, sales outside Japan and the launch of Splatoon 3.

The company is less bullish on Switch console sales, however, lowering its forecast from 21 million to 19 million for 2022. However, it doesn't think that will affect earnings much, with revenue forecast to be 50 billion yen higher at 1.65 trillion yen ($11.25 billion) and operating profit remaining the same at 500 billion yen ($3.4 billion). 

Nintendo said that it has seen a gradual improvement in the supply of semiconductors and other components, along with a "recovery trend in hardware manufacturing for the Switch." However, it lowered the forecast based on sales to date, with the weak yen making up the difference in revenue and profit. 

In the last quarter, the company sold 6.68 million Switch consoles, 3.53 million of which were the OLED model. The standard Switch accounted for 2.23 million sales, while the Switch Lite saw 0.92 million. To date, Nintendo has sold 114.33 million units, putting total Switch sales roughly 40 million units behind the bestselling DS.

It also detailed what that might mean for consumers who want to buy a Switch for the holidays. "By continually working to front-load production and selecting appropriate transportation methods in preparation for the holiday season, we will work to deliver as many consoles as possible to consumers in every region of the world."

That'll be helped by the launch of a bunch of new games, as well. On top of Splatoon 3, it released Bayonetta 3 in October, Pokémon Scarlet and Pokémon Violet in November, Fire Emblem Engage coming in January 2023, and Kirby’s Return to Dream Land Deluxe arriving in February 2023.