Tech Companies’ Division Led by Apple

Quarterly earnings that Apple and Facebook are expected to report this week will clearly show the division of the tech industry into those that are adapting well to the changing web and mobile demands, and those that are not.

Oct 30 2013, 2:21pm CDT | by

Tech Companies’ Division Led by Apple
Photo Credit: Mashable

Both Apple and Facebook are expected to show later today the increase in their revenues in the last quarter. Apple leads with the iPhone sales with two newly released models, and Facebook with mobile advertising.

Google Inc., Amazon.com Inc. and Samsung Electronics Co. have also released financial results that are much better than earlier estimates predicted. Those are the companies that pioneered Internet and mobile-based services. On the other side, companies that had trouble adapting to the new trends are reporting disappointing results. Some of them are Symantec, a security software company, International Business Machines Corp. and Yahoo! Inc.

According to the Gartner’s Inc Director of Research Van Baker, old companies are being pushed away by the companies that are leading the new dominant forces.
The results that Microsoft Corp. reported last week show that it is possible for the divide to exist even within the company. Washington-based software company The Redmond had excellent results for its messaging software and internet telephone, which compensated for the poor results by company’s personal-computer end of business. Redmond doubled sales with the online version of the Office, available through its cloud service. The sales were also excellent for the Azure for its Web hosting application.

Analysts are saying that the companies that dared to disrupt their regular business in order to lead the new trends are being rewarded with excellent results. That is why Google and Amazon, which are new in the tech industry, did so much better than old companies such as IBM.

For a long time, the tech industry profited from selling personal computers and software that went with them. The huge popularity of tablets, smartphones and any device that allows people to work and play anywhere where there is an internet connection is turning the tech industry on its head.

Apple clearly leads the shift. It was Steve Jobs who came up with the term “post PC era.” Morgan Stanley’s analyst Katy Huberty is predicting that Apple will show better than expected results, especially because the success of the newly released iPhone 5C and 5S. Bloomberg is predicting that Apple will sell 33 million iPhones during the last quarter.

Apple’s quarterly profit is expected to be $7.21 billion. Unless Apple comes up with a new product in the last quarter, its profit will fall for a third quarter in a row.

The coming holidays shopping season sales of Apple products will offer a glimpse of what to expect. According to Huberty, it is possible that Apple will earn 55 million this year, in comparison to 47.8 million last earlier.

Apple’s spokeswoman Kristin Huguet refused to comment.

Source: Business Week

 
 
 

<a href="/latest_stories/all/all/25" rel="author">Bijon Kumar Pramanik</a>
Bijon Kumar Pramanik is an experienced technology writer working since years in the consumer electronics field.

 

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