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CEO Paul E. Jacobs of Qualcomm delivers a keynote address at the 2012 International Consumer Electronics Show. The San Diego company pleased Wall Street with its most recent earnings.
Qualcomm beat what the Street had anticipated, while bringing more than $6 billion in revenue in its first fiscal quarter.
That was a nearly 30 percent increase over the same quarter a year ago. And of that, profit was $2.2 billion, which worked out to $1.26 per share, a figure that delighted analysts who had expected less.
The good numbers pushed the company’s stock immediately higher in after-hours trading on the Nasdaq exchange.
This contrasts with Canada’s Research in Motion, whose new BlackBerry smartphones are powered by Qualcomm processors. RIM changed its name to “BlackBerry,” but the new edition devices haven’t (yet) reversed its fortunes. Its stock dipped as Qualcomm’s rose.
Qualcomm told investors to expect continued good results in 2013 — in the lexicon of finance, it upgraded its "guidance" — as the company rolls out new chips and benefits from more consumers upgrading to smartphones, especially in developing world markets like China.
The Los Angeles Auto Show has in recent years defined itself as the "green" car show. California has the largest auto market in the U.S., as well as the most environmentally preoccupied. But the most dramatic auto debuts during car show season, running through next spring, are traditionally reserved for Detroit, the auto industry's spiritual home. So L.A. has had to kick off car show season with its own attention-getting twist.
The L.A. Auto Show focuses on the dream machines, the future of transportation and, over the past decade, on electric cars, hybrids, plug-in hybrids, alternative fuel vehicles — in short, things with wheels that aren't total slaves to gas. But this year, it's different.
The new story is technology. Specifically, how cars will soon become platforms for various consumer electronics, mainly smartphones. In the past, automakers have preferred to design and build their own in-vehicle infotainment systems or partner with tech companies. The most prominent of these has been Ford and its relationship with Microsoft; Ford's CEO, Alan Mullaly, has also made regular pilgrimages to the annual Consumer Electronics Show (CES) in Las Vegas. General Motors has had a loose association with Google (and Google itself is the the auto game, with its driverless car). No one has yet broken through with Apple.
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A member of the media examines the Samsung Electronics Co. Galaxy Nexus smartphone, running Google Inc.'s Ice Cream Sandwich Android operating, system in Hong Kong, China, on Wednesday, Oct. 19, 2011. Samsung will begin selling the first mobile phone run on Google's new operating system next month, counting on facial-recognition security to help challenge Apple Inc.'s iPhone.
At Slate, Matt Yglesias rolls out a chart that shows the astonishing adoption rates of both Apple's iOS and Google's Android. So yes, both mobile operating systems have done more than caught on — they've taken over the world.
The developed world, that is. And this is where I think Yglesias overreaches:
In terms of adoption rates, iOS blew the previous entrants out of the water and now Android is setting a new even more amazing record-breaking pace. This is going to be an especially important development in relatively poor countries while mobile connectivity is generally better than wireline, so the availability of relatively cheap relatively powerful mobile devices is a total gamechanger.
He's making the healthy assumption that these operating systems are going to be adopted in the developing world. iOS runs on only Apple devices — and Apple devices are very expensive, even by developed-world standards.
Media engagement patterns vary greatly depending on what device — PC, smartphone/cellphone, or tablet — the user is employing.
I attended a conference about a week ago put on by students and alumni from USC's Marshall School of Business. It's called "E2: Evolution of Entertainment Conference," and it's designed to bring business, entertainment, technology, and media together. Makes sense, as all four are important to the Southern California economy — and to USC students.
The conference is now in its fourth year, drawing seasoned media, entertainment, and business professionals to USC to provide their insight.
On one of the panels, Joe Perez, who just left an executive role at Demand Media, made an interesting comment. He said that he'd just come across some research that indicated PC, cell phone, and tablet users engage in unique daily online and/or wireless patterns. I've created a simple, some might say crude, drawing (right) that summarizes these patterns:
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CUPERTINO, CA - OCTOBER 04: Apple's Senior Vice President of iOS Scott Forstall speaks about the new voice recognition app called Siri at the event introducing the new iPhone 4s at the company's headquarters October 4, 2011 in Cupertino, California. The announcement marks the first time new CEO Tim Cook introduced a new product since Apple co-founder Steve Jobs resigned in August. (Photo by Kevork Djansezian/Getty Images)
Apple just flat-out killed it last quarter, largely on the strength of iPhone sales. Most analysts, technological and financial, now readily agree that Apple reinvented the smartphone business with the iPhone by putting a computer in your pocket. What's perhaps less apparent is that Apple also reinvented the business model for mobile communications. That's why this headline from CNET provokes a double-take: "iPhone Soaks Up 75 Percent of All Mobile Phone Profits."
What?!?! Three quarters of all profits available in the mobile space go to Cupertino? That's remarkable. Here's CNET:
Though it holds only around 9 percent of the global mobile phone market, Apple raked in 75 percent of all profits across the industry last quarter, according to Asymco analyst Horace Dediu.
That left rival Samsung with 16 percent of the profit pie, RIM with 3.7 percent, HTC with 3 percent, and Nokia rounding out the list of 1.8 percent. All together that pie represents around $15 billion in profits for the final quarter of 2011.