Apple results up sharply as iPhone sales grow 91%

Apple results up sharply as iPhone sales grow 91%
(Telecompaper) Apple announced revenues of USD 20.34 billion for its fiscal fourth quarter to 25 September, up sharply from USD 12.21 billion in the year-earlier period. International sales accounted for 57 percent of the quarter’s revenue. Apple’s gross margin fell to 36.9 percent from 41.8 percent in the year-ago quarter. Net profit rose to USD 4.31 billion, or USD 4.64 per diluted share, from USD 2.53 billion or USD 2.77 per share. The results were well ahead of its previous guidance for revenues of USD 18 billion and EPS of USD 3.44. Apple sold 14.1 million iPhones in the quarter, representing 91 percent unit growth over the year-ago quarter. The company also sold 4.19 million iPads during the quarter, and Mac sales improved 27 percent to 3.89 million. iPod sales were down 11 percenr year-on-year to 9.05 million. Apple said both revenues and profit were at all-time highs for the company, while iPhone sales beat rival Research In Motion’s most recent quarterly sales of 12.1 million phones. Apple also generated almost USD 5.7 billion in cash flow from operations during the quarter. The company forecast revenue of around USD 23 billion and EPS of USD 4.80 for fiscal Q1, and said the company still has “a few surprises left for the remainder of this calendar year”.[Lees verder]

Wind Hellas agrees debt-equity swap
(Telecompaper) Greek operator Wind Hellas announced an agreement to swap much of its debt for equity, giving its bondholders control of the company. The company has been looking since June for new investors to help it restructure its debt. Wind said a total six companies were invited to conduct due diligence. The senior secured notes or so-called SSN committee has now been named the preferred bidder. It’s made up of several major private equity investors which hold 57 percent of Wind’s SSNs. They have agreed to waive EUR 1.225 billion in SSNs and EUR 355 million in senior unsecured notes owed by Wind in exchange for 100 percent of the company’s equity. They will also provide a cash injection of EUR 420 million at closing to pay of some of the company’s short-term liabilities and support its business plan. A manjority (77%) of the bondholders has already agreed to support the transaction and it will be open on a pro rata basis to the other bondholders. Nassos Zarkalis, named CEO late last year, will continue in his position, and Wind will also name new senior telecom executives and senior representatives of the Greek business community to its board, the company said.[Lees verder]

Televisa abandons investment in Nextel Mexico
(Telecompaper) Mexican media group Televisa has abandoned plans to invest in Nextel Mexico. The mobile operator joined forces with Televisa to bid for a 30 MHz nationwide block of frequencies which they planned to use for a 3G network costing more than MXN 19 billion investment over five years. Televisa pledged to invest USD 1.44 billion for a 30 percent stake in Nextel, plus an option to purchase an additional 7.5 percent. The companies did not say why they ended the partnership. However the award of their licence has faced legal opposition, with rival mobile operator Iusacell filing a court challenge against the low price the Nextel-Televisa consortium paid for the licence. The consortium paid MXN 180.3 million for the spectrum in the 1710MHz to 2170MHz band. Nextel said it has the financing in place to go ahead with the 3G roll-out on its own, with a commercial launch expected within 12-18 months. The company said it will still look at a commercial cooperation with Televisa, including offering the media group’s content over the Nextel network.[Lees verder]

Draka receives unsolicited bid from Nexans
(Telecompaper) French cable manufacturer Nexans announced an agreement with the main shareholder of Netherlands-based cablemaker Draka to make a takeover offer for Draka. Flint Management, Draka’s largest shareholder, agreed to tender its shares to Nexands under certain conditions, while Nexans agreed to launch a cash offer of EUR 15 per share for all of Draka. Draka’s share rose over 36 percent to just over EUR 15 on 18 October after the bid was announced. The transaction would contribute to the consolidation of the cable sector, improve the competitiveness of Nexans’ European asset base and reinforce its positions in specialty cables, the French company said. Nexans said it would maintain a “sound financial structure” after securing financing for the acquisition. The Nexans proposal will be subject to customary conditions, including approval by the Nexans board of directors, recommendation of the offer by the Draka management and supervisory boards, due diligence, a 95 percent acceptance threshold, and regulatory approvals. Nexans intends to begin negotiations with Draka with a view to reaching an agreement as soon as possible. Draka said it had received the Nexans statement and was still reviewing the proposal.[Lees verder]

Eelco Blok becomes new KPN CEO
(Telecompaper) Dutch operator KPN has appointed Eelco Blok to be the company’s next CEO, succeeding retiring CEO Ad Scheepbouwer from 6 April 2011, after the company’s annual shareholders meeting next year. Blok has also been named chairman of KPN’s board of management from the same date. Blok has held different management positions since he first joined the KPN board of management in 2004 and played a key role in improving performance at KPN’s Dutch organization, and furthering the company’s Challenger strategy in Belgium and Germany. Until the April handover, Blok will take the position of COO and work closely with Scheepbouwer. Blok will receive an annual fixed compensation of EUR 800,000, as well as cash short-term incentives and a longer term incentive of conditional shares.[Lees verder]

Motorola, Nokia sign 4G licensing agreement
(Telecompaper) Motorola and Nokia have signed a 4G licensing agreement. Under the terms of the agreement, Motorola and Nokia have extended the companies’ existing intellectual property licensing agreement to include 4G mobile technologies, such as LTE, Wimax and LTE-Advanced. The terms of the agreement are confidential.[Lees verder]

Worldwide media tablet sales to reach 19.5 mln units in 2010
(Telecompaper) Worldwide media tablet sales to end users are forecast to reach 19.5 million units this year, driven by sales of the iPad, according to a study by Gartner. Media tablets are poised for strong growth with worldwide end user sales projected to total 54.8 million units in 2011, up 181 percent from this year, and surpass 208 million units in 2014. Media tablets sales will reach 103 million units in 2012 and 154 million units in 2013. Gartner analysts said the impact of media tablets on other devices will vary among segments. Gartner research vice president Carolina Milanesi said that the all-in-one nature of media tablets will result in the cannibalisation of other consumer electronics devices such as e-readers, gaming devices and media players. Mini notebooks will suffer from the strongest cannibalisation threat as media tablet average selling prices drop below USD 300 over the next two years. Low-end consumer notebooks will only marginally suffer from cannibalisation. Gartner analysts expect very limited cannibalisation on communication devices based on open OS (smartphones). The majority of the impact will be from 7-inch media tablets on high-end smartphones as it will be hard for a user to justify owning both when the differentiation in usage model is very limited.[Lees verder]

Indian operators add 12.42 mln GSM customers in September
(Telecompaper) Indian mobile operators ended September with 494.04 million GSM subscribers, up 2.58 percent from 481.61 million subscribers in August, according to figures from the industry association COAI. In total, India’s GSM mobile subscriber base grew by 12.42 million. Bharti Airtel remained market leader with a market share of 29 percent, slightly down from 29.33 percent in August. The operator had 143.29 million subscribers, up from 141.2 million a month earlier. Vodafone Essar added around 1.78 million new customers and its subscriber base reached 115.55 million, up from 113.7 million a month earlier, and Vodafone Essar’s market share was 23.39 percent. Idea Cellular was in third place as its subscriber base grew to 74.21 million customers from 72.7 million in the prior month, and Idea’s market share was 15.02 percent. BSNL added 2.34 million customers to bring its customer base to 72.69 million and its market share to 14.71 percent. Aircel captured 9.42 percent of the total market, and its user base grew to 46.52 million after adding 1.61 million new subscribers in September. Uninor attracted 2.17 million new subscribers to bring its total to 11.27 million, and the operator ended the month with a market share of 2.28 percent. MTNL grew its subscriber base by 35,146 to 5.02 million but its market share slipped to 1.02 percent. Loop Mobile added 15,788 users for a total subscriber base of 2.98 million, while its market share fell to 0.60 percent. Videocon subscribers reached 4.48 million, followed by S Tel with 1.64 million, as the operators added 817,373 and 122,774 new subscribers, respectively. Etisalat DB’s user base grew by 12,874 to 56,583 subscribers. Etisalat had a market share of 0.01 percent.[Lees verder]

Apple results up sharply as iPhone sales grow 91%
(Telecompaper) Apple announced revenues of USD 20.34 billion for its fiscal fourth quarter to 25 September, up sharply from USD 12.21 billion in the year-earlier period. International sales accounted for 57 percent of the quarter’s revenue. Apple’s gross margin fell to 36.9 percent from 41.8 percent in the year-ago quarter. Net profit rose to USD 4.31 billion, or USD 4.64 per diluted share, from USD 2.53 billion or USD 2.77 per share. The results were well ahead of its previous guidance for revenues of USD 18 billion and EPS of USD 3.44. Apple sold 14.1 million iPhones in the quarter, representing 91 percent unit growth over the year-ago quarter. The company also sold 4.19 million iPads during the quarter, and Mac sales improved 27 percent to 3.89 million. iPod sales were down 11 percenr year-on-year to 9.05 million. Apple said both revenues and profit were at all-time highs for the company, while iPhone sales beat rival Research In Motion’s most recent quarterly sales of 12.1 million phones. Apple also generated almost USD 5.7 billion in cash flow from operations during the quarter. The company forecast revenue of around USD 23 billion and EPS of USD 4.80 for fiscal Q1, and said the company still has “a few surprises left for the remainder of this calendar year”.[Lees verder]

Wind Hellas agrees debt-equity swap
(Telecompaper) Greek operator Wind Hellas announced an agreement to swap much of its debt for equity, giving its bondholders control of the company. The company has been looking since June for new investors to help it restructure its debt. Wind said a total six companies were invited to conduct due diligence. The senior secured notes or so-called SSN committee has now been named the preferred bidder. It’s made up of several major private equity investors which hold 57 percent of Wind’s SSNs. They have agreed to waive EUR 1.225 billion in SSNs and EUR 355 million in senior unsecured notes owed by Wind in exchange for 100 percent of the company’s equity. They will also provide a cash injection of EUR 420 million at closing to pay of some of the company’s short-term liabilities and support its business plan. A manjority (77%) of the bondholders has already agreed to support the transaction and it will be open on a pro rata basis to the other bondholders. Nassos Zarkalis, named CEO late last year, will continue in his position, and Wind will also name new senior telecom executives and senior representatives of the Greek business community to its board, the company said.[Lees verder]

Televisa abandons investment in Nextel Mexico
(Telecompaper) Mexican media group Televisa has abandoned plans to invest in Nextel Mexico. The mobile operator joined forces with Televisa to bid for a 30 MHz nationwide block of frequencies which they planned to use for a 3G network costing more than MXN 19 billion investment over five years. Televisa pledged to invest USD 1.44 billion for a 30 percent stake in Nextel, plus an option to purchase an additional 7.5 percent. The companies did not say why they ended the partnership. However the award of their licence has faced legal opposition, with rival mobile operator Iusacell filing a court challenge against the low price the Nextel-Televisa consortium paid for the licence. The consortium paid MXN 180.3 million for the spectrum in the 1710MHz to 2170MHz band. Nextel said it has the financing in place to go ahead with the 3G roll-out on its own, with a commercial launch expected within 12-18 months. The company said it will still look at a commercial cooperation with Televisa, including offering the media group’s content over the Nextel network.[Lees verder]

Draka receives unsolicited bid from Nexans
(Telecompaper) French cable manufacturer Nexans announced an agreement with the main shareholder of Netherlands-based cablemaker Draka to make a takeover offer for Draka. Flint Management, Draka’s largest shareholder, agreed to tender its shares to Nexands under certain conditions, while Nexans agreed to launch a cash offer of EUR 15 per share for all of Draka. Draka’s share rose over 36 percent to just over EUR 15 on 18 October after the bid was announced. The transaction would contribute to the consolidation of the cable sector, improve the competitiveness of Nexans’ European asset base and reinforce its positions in specialty cables, the French company said. Nexans said it would maintain a “sound financial structure” after securing financing for the acquisition. The Nexans proposal will be subject to customary conditions, including approval by the Nexans board of directors, recommendation of the offer by the Draka management and supervisory boards, due diligence, a 95 percent acceptance threshold, and regulatory approvals. Nexans intends to begin negotiations with Draka with a view to reaching an agreement as soon as possible. Draka said it had received the Nexans statement and was still reviewing the proposal.[Lees verder]

Eelco Blok becomes new KPN CEO
(Telecompaper) Dutch operator KPN has appointed Eelco Blok to be the company’s next CEO, succeeding retiring CEO Ad Scheepbouwer from 6 April 2011, after the company’s annual shareholders meeting next year. Blok has also been named chairman of KPN’s board of management from the same date. Blok has held different management positions since he first joined the KPN board of management in 2004 and played a key role in improving performance at KPN’s Dutch organization, and furthering the company’s Challenger strategy in Belgium and Germany. Until the April handover, Blok will take the position of COO and work closely with Scheepbouwer. Blok will receive an annual fixed compensation of EUR 800,000, as well as cash short-term incentives and a longer term incentive of conditional shares.[Lees verder]

Motorola, Nokia sign 4G licensing agreement
(Telecompaper) Motorola and Nokia have signed a 4G licensing agreement. Under the terms of the agreement, Motorola and Nokia have extended the companies’ existing intellectual property licensing agreement to include 4G mobile technologies, such as LTE, Wimax and LTE-Advanced. The terms of the agreement are confidential.[Lees verder]

Worldwide media tablet sales to reach 19.5 mln units in 2010
(Telecompaper) Worldwide media tablet sales to end users are forecast to reach 19.5 million units this year, driven by sales of the iPad, according to a study by Gartner. Media tablets are poised for strong growth with worldwide end user sales projected to total 54.8 million units in 2011, up 181 percent from this year, and surpass 208 million units in 2014. Media tablets sales will reach 103 million units in 2012 and 154 million units in 2013. Gartner analysts said the impact of media tablets on other devices will vary among segments. Gartner research vice president Carolina Milanesi said that the all-in-one nature of media tablets will result in the cannibalisation of other consumer electronics devices such as e-readers, gaming devices and media players. Mini notebooks will suffer from the strongest cannibalisation threat as media tablet average selling prices drop below USD 300 over the next two years. Low-end consumer notebooks will only marginally suffer from cannibalisation. Gartner analysts expect very limited cannibalisation on communication devices based on open OS (smartphones). The majority of the impact will be from 7-inch media tablets on high-end smartphones as it will be hard for a user to justify owning both when the differentiation in usage model is very limited.[Lees verder]

Indian operators add 12.42 mln GSM customers in September
(Telecompaper) Indian mobile operators ended September with 494.04 million GSM subscribers, up 2.58 percent from 481.61 million subscribers in August, according to figures from the industry association COAI. In total, India’s GSM mobile subscriber base grew by 12.42 million. Bharti Airtel remained market leader with a market share of 29 percent, slightly down from 29.33 percent in August. The operator had 143.29 million subscribers, up from 141.2 million a month earlier. Vodafone Essar added around 1.78 million new customers and its subscriber base reached 115.55 million, up from 113.7 million a month earlier, and Vodafone Essar’s market share was 23.39 percent. Idea Cellular was in third place as its subscriber base grew to 74.21 million customers from 72.7 million in the prior month, and Idea’s market share was 15.02 percent. BSNL added 2.34 million customers to bring its customer base to 72.69 million and its market share to 14.71 percent. Aircel captured 9.42 percent of the total market, and its user base grew to 46.52 million after adding 1.61 million new subscribers in September. Uninor attracted 2.17 million new subscribers to bring its total to 11.27 million, and the operator ended the month with a market share of 2.28 percent. MTNL grew its subscriber base by 35,146 to 5.02 million but its market share slipped to 1.02 percent. Loop Mobile added 15,788 users for a total subscriber base of 2.98 million, while its market share fell to 0.60 percent. Videocon subscribers reached 4.48 million, followed by S Tel with 1.64 million, as the operators added 817,373 and 122,774 new subscribers, respectively. Etisalat DB’s user base grew by 12,874 to 56,583 subscribers. Etisalat had a market share of 0.01 percent.[Lees verder]

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