Tag: Loss

Amazon India Losses Grow To Rs. 6,287 Crore

Amazon is fast becoming the country most popular market place, however it is also losing money fast. The company suffered a loss of Rs. 6,287 crore for the FY 2017-2018 from Rs. 4,831 crore compared to last year. The venue for Amazon in India however, grew 54% to Rs. 5,018 crore from Rs. 3,257 crore.

According to Amazon the increase in the losses was due to improvements in the Amazon India infrastructure. The company spent big this year to increase its fulfilment centres and improve technology which includes the launch of the GST equipped Business Amazon. The company also increased its total spending to Rs. 11,305 crore compared to Rs. 8,087 crore done by the e-commerce giant last year.

Amazon hopes to rake in large incomes from the three waves of sales the company had in the month of October and the ongoing Diwali Sale. The company also expects business to be up in the month of November and December 2018 due to large festive shopping.

Also Read : Amazon Funded Start-Up Unveils Smart Glasses With Alexa Support

The company pays its full time directors of Amazon Seller services about Kandula Raghava Rao and Noorulamin Mohd Saheb Patel a combined Rs 5.5 crore in salaries a year. The company also claims to have filed Rs. 96.8 crore “under protest” in taxes to income and service tax departments. Amazon has grown substantially and now services 99% pin codes in the country.

Amazon’s Rival in India, Flipkart India Private Limited reported a nine fold net loss of Rs. 2064 crore as compared to Rs. 245 crore in the previous financial year. One the flip side, Flipkart’s revenues rose by 39.11% to Rs. 21,658 crore from Rs. 15,569 crore.

November 3, 2018
Xiaomi’s Q1 Earnings May Not be as Good as You Think

Lately, Xiaomi has been in the news for all the good reasons. They’re constantly announcing high-speced affordable smartphones and earnings that are constantly on a rise. But seems like the good days of the company may be over played. The Chinese equipment manufacturer that took over Apple’s sales on its home ground a while back, is now witnessing a steep decline in its revenue.

Ben Bajarin from the market research firm Creative Strategies revealed the quarterly sales of Xiaomi. The figure shown below depicts a decline in the Q1 2015 from the last quarter of 2014.

Based on Xiaomi’s end of March statement they sold 100m smartphones in total, they did not have a good Q1 2015. pic.twitter.com/Bn9qwyKukW

— Ben Bajarin (@BenBajarin) April 28, 2015

According to the statement by Ben Bajarin, Xiaomi sold a total of 100 million handsets, which is less than its previous records. One of the major reasons for lesser business for the Chinese tech giant is the supply shortage. The flash sale model adopted by the company has worked both in its favour and against. When the company’s supply does not meet the demand, interested buyers begin looking for other options.

There is a possibility that the latest Mi phone may help recover the revenue. The new Xiaomi Mi 4i consists of the Mi 4 parts, which are easily available in the market. Their supply chain is expected to achieve an overall boost by this, consequently helping Xiaomi build its sales numbers. Let’s hope Xiaomi pays heed to these figures, and increases its units in the future.

April 28, 2015
Troubled Waters Lay Ahead for Sony as it Registers $1.2 Billion Loss

Billion is an amazing number. It is used to signify the number of stars in the sky, the populations of India and China, and the number of atoms in a human body. But for Sony, the term means time to take drastic measures. The Japanese consumer-electronic giant has been in troubled waters for a while and seems like it’s not going to come to an end anytime soon.

The company has registered a record loss of $1.2 billion. This has led the company to decrease its smartphone sales figures from 43 million to 41 million. This came after the company has decreased its sales projection from 50 million to 43 million in this financial year that runs from April 2014 to March 2015.

There is some silver lining in this bleak news from the once-unanimously valued brand. The company saw an overall sales increase by 7.2% to reach $17.4 billion. Sony’s latest gaming console, the PlayStation 4, is the most visible product that is holding up its fort as of now.

The Japanese company has been in damage control mode for a while. It increased its marketing expenses, and research and development expenses, in order to expand sales. This may pay off in some key markets.

Sony’s latest flagships have been appreciated for their features, but they come at a flagship price range. Hence, the phones haven’t been able to provide the company the revenue they require. Sony has also given the charge of its smartphone business in the hands of a new head, Hiroki Totok. He will replace the current head, Kunimasa Suzuki, on 16th November. Hopefully, the infusion of new head might bring some ideas that will help get Sony back on track. Or else, it may go the way of Nokia, which is, fortunately, not a possibility as of yet.

October 31, 2014
Nintendo Executives Take Pay Cuts For Faltering Wii Sales

Following some pretty miserable financial results, Nintendo president Satoru Iwata has said he will take a 50% cut to his salary. For at least the next five months, Iwata will take home half as much money as usual, and other prominent executive staff will see pay reductions as well. Shigeru Miyamoto and Genyo Takeda, will take a 30% pay cut, while other board members will take a 20% pay cut.

The cuts will stay in place until June, when the board will see if it deserves to go back to normal. That will depend not so much on a turnaround in the Wii U’s fortunes – which won’t really be evident until nearer Christmas – but in how Nintendo presents itself to investors and convinces them it has a new plan for turning themselves around.

The struggling Japanese gaming firm revealed profits slumped 30 per cent in the nine months to December, falling to 10.2 billion yen (£60 million).

Nintendo also warned it expects sales to “decrease significantly” in the current quarter as Christmas sales end.

The Super Mario Brothers and Donkey Kong creator has been weighed down by weaker-than-expected sales of its Wii U console, launched at the end of 2012.

Nintendo will be holding a big corporate meeting tomorrow to outline and plan its new business strategy.

January 29, 2014
Sony Sells More Smartphones But Gets Drop in Demand For Pc’s and Cameras

Sony with the latest flagship Xperia Z1 and even the other smartphones by the company is doing good in the markets globally. Sony hugely improved smartphone range have done well for the company, and mobile sales in the last quarter have increased 39.3 percent from last year.

However, the above information is for smartphones, Sony as a company got a cut in its annual profit forecast down to 30 billion yen (roughly $300 million) a 40 percent decrease from the 50 billion yen the company expected to pull in. Camera sales dropped 6.9 percent, following a total loss of $24 million. The TV sales are up, but despite the positive effects of cost reductions and restructuring, the division still lost $123 million in the last quarter. Whereas, Sony’s own image sensors and other components continue to make money, which is furthered followed by the boom in its mostly waterproof smart devices, with an operating income of $122 million for Q2 2013.

October 31, 2013
AMD Exceeds Expectations But Posts Losses In Q2

A day after its competitor Intel posted financial results for its most recent quarter that came in slightly below analyst’s estimates, AMD bucked that disappointing trend – but it’s not quite out of the woods yet.

AMD reported its second quarter results on Thursday after markets closed, and reported a loss of $0.09 per share on sales revenues of $1.16bn.

In the previous first quarter, revenues came in at $1.09 billion, down 32 percent from a year ago. Last quarter, the chip maker’s net loss per share (after one-time items) was 13 cents a share, or $94 million.

The Sunnyvale, Calif.-based AMD, the No. 2 maker of PC microprocessors, has had a tough couple of years as it trailed Intel in competitiveness and saw a slowdown in demand as consumers began to favor tablets and smartphones over PCs. Since it wasn’t well positioned for that transition, the slowdown hit AMD harder than Intel

Analysts expected a loss of 13 cents a share on revenue of $1.1 billion for the second quarter. AMD had a profit of 6 cents a share a year ago.

A.M.D. processors are being used in Microsoft’s coming Xbox One and Sony’s next-generation PlayStation game consoles. These devices are largely behind A.M.D.’s upbeat revenue forecast.

A.M.D. said its gross margin in the second quarter was 40 percent and would fall to about 36 percent in the third quarter. Analysts on average had expected a third-quarter gross margin of 39 percent.

[Via]

July 19, 2013