His comments came as SoftBank, which owns more than 70% of Sprint, reported its quarterly earnings.
“Sprint is now in the position to increase the pace of user acquisition while cutting costs,” Son said, according to Bloomberg and other news sources. “We will also cut staff. The cuts will be in the thousands.”
Son’s comments are not out of line with things Sprint CEO Marcelo Claure has been telling Sprint workers for months.
On Tuesday, Sprint’s stock price sagged downward after an earnings report included a statement saying that the carrier plans to cut $2 billion or more in operating expenses for its 2016 fiscal year, which begins in April.
Son also said the $2 billion is a “minimum target” and should be the amount slashed annually, according to a report by The Wall Street Journal. The company now has more than $25 billion in annual costs.
Sprint has been investing in attracting new customers — an effort that has been costly but effective. On Tuesday, Sprint reported it gained 237,000 postpaid phone customers in its second fiscal quarter, which ended Sept. 30. It was the first time the company had showed gains on that measure in two years. It also reported its lowest customer cancellation rate in company history.
In November 2014, Sprint had said it would cut 2,000 jobs as part of $1.5 billion in cost reductions. That announcement came after Sprint had cut 5,000 jobs from January through September 2014. The company had 31,000 workers at the start of its current fiscal year on April 1.
Yahoo Inc announced that it has signed a search advertising deal with Google Inc, providing a potential boost to Marissa Mayer’s efforts to turn around the company, which also reported revenue and profit that fell short of market estimates.
The deal with Google, a unit of Alphabet Inc, builds on an existing search partnership Microsoft Corp under which Yahoo gets a percentage of revenue from ads displayed on its sites.
Yahoo, whose shares were down 1.6 percent in after-hours trading, said the companies have agreed to delay implementation of the deal in the United States to allow the antitrust division of the Department of Justice to review it.
Yahoo has been struggling to boost revenue from ad sales in the face of stiff competition from Google and Facebook.
The Google deal was one of the few bright spots included in the company’s third-quarter results statement.
Yahoo said it expected fourth-quarter revenue of $1.16 billion–$1.20 billion, well below the average analyst estimate of $1.33 billion, according to Thomson Reuters I/B/E/S.
Mayer, in her fourth year as chief executive, said the forecast was “not indicative of the performance we want.”
“We are also experiencing continued revenue headwinds in our core (advertising) business, especially in the legacy portions,” Mayer said on a call with analysts.
Retail foreign exchange trading has grown rapidly in recent years, but the image has been of a lone trader in front of a computer screen. Smartphones, owned by around half the world’s adults, are changing that.
Mobile trading makes up about 60 percent of transactions, up from 10 percent four years ago, at London-based broker Trade 212, whose app has been downloaded over a million times. More than a fifth of clients trade only on smartphones or tablets.
“We are seeing a big number of clients who are not only mobile first, but mobile only,” said Ivan Ashminov, Trade 212′s co-founder.
Like others, Trade 212 offers demo accounts allowing users, largely male and mostly aged between 25 and 45, to practise with fake money. Many have no previous trading experience, Ashminov said.
Faheem Bismal, a 32-year-old father of two from Glasgow, sold his chain of convenience stores and restaurants two years ago to focus on property investment and trading currencies. He trades on broker FXCM’s smartphone app on the school run and in bed before he turns out the light.
When he only traded on his desktop and could not check the market when he was out and about, he was less successful, Bismal said. But he warns that the ease and accessibility of trading apps can be dangerous.
“I see guys sitting on their phones just tapping away, being in and out of the market within seconds or minutes … and losing all their money. If you’re going to use the app you have to use it very sensibly.”
In 2013, the Bank for International Settlements estimated the value of retail currency trading at about $185 billion a day, or 3.5 percent of the market. Industry analysis website Finance Magnates reckons that figure is now closer to $320 billion. Smartphones, it seems, are helping drive growth.
Almost 40 percent of trading at IG, one of the world’s biggest retail FX platforms, is done on mobile devices, up from around 20 percent three years ago. In April, the firm became the first to offer a trading app on the Apple Watch, which vibrates when a user-set price is reached.
Ex Microsoft Corp Chief Executive Steve Ballmer has purchased a 4 percent stake in Twitter Inc, according to his spokesman, making him the third-biggest individual shareholder in the social media company.
Ballmer’s stake is worth more than $800 million based on Twitter’s $21 billion market value. Only co-founder Evan Williams and Saudi billionaire Prince Alwaleed bin Talal have greater stakes among individual investors.
Friday Ballmer tweeted from a non-verified account that he built up his stake over the past several months.
His tweet lauded Twitter’s new ‘Moments’ feature, which curates the best tweets of the day, and Dorsey’s appointment as permanent CEO last week.
“Good job @twitter, @twittermoments innovation, @jack Ceo, leaner, more focused,” the tweet said. “Glad I bought 4% past few months.”
Twitter declined to comment. Ballmer himself did not return requests for comment.
Ballmer, who bought the Los Angeles Clippers basketball team after retiring as Microsoft CEO in February 2014, has a personal fortune of about $21.5 billion, making him the 35th richest person in the world, according to Forbes magazine.
Ballmer now owns more of Twitter than co-founder and CEO Dorsey, who has a 3.2 percent stake, according to Thomson Reuters data. Williams is the largest individual shareholder with about 7.5 percent, followed by Alwaleed with about 5.2 percent.
Like @alwaleedbinT move too,” Ballmer’s tweet said. Alwaleed and his investment firm, Kingdom Holding Co 4280.SE, said earlier this month they had raised their stake in Twitter to more than 5 percent.
Ballmer’s investment is a sign that Twitter’s efforts to revive growth under Dorsey is being appreciated, Monness, Crespi, Hardt, & Co Inc analyst James Cakmak said.
“I think it’s just another point of evidence that the step that they are taking to redirect the business toward growth is resonating,” Cakmak said.
Twitter has made several new announcements since Dorsey, who also served as CEO in 2008, returned on a permanent basis last week. On Tuesday, Twitter said it will lay off about 8 percent of its workforce and on Wednesday, it hired Google Inc executive Omid Kordestani as executive chairman.
FBN Securities analyst Shebly Seyrafi said Ballmer’s stake could be indicative of widespread confidence in Dorsey and his strategy.
Shares of Netflix, known for its original shows such as “House of Cards” and “Orange is the New Black”, plummeted about 15 percent after the bell, before finally reversing most of the loss to trade down 2.4 percent.
U.S. credit and debit card companies have been shifting to chip-enabled cards ahead of the Oct. 1 deadline mandated for the switch.
For Netflix, the switch meant that many of the older cards on its file no longer worked as the companies gave new cards to their customers, leading to “involuntary churn,” as Chief Executive Reed Hastings put it in a letter to shareholders.
“It’s just the dumbest thing I’ve heard,” Wedbush Securities analyst Michael Pachter said.
FBR Capital Markets analyst Barton Crockett said the issue around the chip cards is particularly confusing, given that these cards have been around for a bit.
“It begs a million questions,” he said.
Netflix said on Wednesday it added 0.88 million U.S. subscribers in the third quarter ended Sept. 30, compared with its forecast of 1.15 million.
“The slowdown in U.S. subscriber growth was particularly disappointing because one would expect that since Netflix just raised rates last week, this number would have been strong,” said Crockett.
Netflix increased the subscription rate for some new members earlier this month by $1.00 a month to $9.99 in the United States, Canada and Latin America.
Internationally, Netflix added 2.74 million subscribers, compared with its projection of 2.40 million.
Netflix, which is also battling competition from streaming services such as Amazon.com Inc’s Prime Video service and Hulu, has been aggressively building its overseas presence.
The company said it was in the “early stages” of its China entry and said it was “still learning a lot”.
Netflix said in July its plans to enter China in 2016 could be delayed.
Netflix is being “more adventurous” on the news side, company executives said on a post-earnings conference call.
The company added it was not looking at live sports as an offering currently.
Oracle Corp’s sales declined more than expected in the first quarter, hurt by a strong dollar and a continued drop in licensed software sales and the company warned revenue could fall in the current quarter even on a constant currency basis.
Like its rivals such as SAP, IBM Corp and Microsoft Corp , Oracle is striving to boost Internet-based software sales to head off fast-growing competitors such as Salesforce.com Inc.
But, analysts have said Oracle’s cloud software business has not been growing fast enough to make up for declines in the 38-year-old company’s licensed software business due to reasons ranging from slow customer adoption to tough competition.
Oracle’s revenue declined 1.7 percent to $8.45 billion in the quarter ended Aug. 31, missing analysts estimates for the third quarter in a row.
The company said sales increased 7 percent on a constant currency basis. However, it forecast revenue to range between a fall of 2 percent to growth of 1 percent in the current quarter.
“On an apples-to-apples basis, that’s disappointing. It’s pretty clearly below consensus even at the top end,” Wedbush Securities Inc analyst Steve Koenig said.
Oracle’s shares fell as much as 2.8 percent in extended trading on Wednesday.
The company’s net income declined 20 percent to $1.75 billion in the first quarter. Excluding items, it earned 53 cents per share, more than analysts’ estimate of 52 cents.
Sales of Oracle’s cloud-computing software and platform service rose 34 percent to $451 million. Sales of traditional software licenses fell 16 percent to $1.51 billion.
Wall Street was expecting cloud-based sales to increase 35 percent and licensed software sales to decline 17 percent, according to RBC Capital Markets.
“In the foreseeable future the database business continues to be a dark cloud over the company’s head,” FBR Capital Markets analyst Daniel Ives said.
Cloud-based software sales account for a small portion of Oracles’ total revenue as they are subscription based, which promise a steady revenue stream but with lower margins.
Fundamentally, all of Oracle’s software will be available on the cloud by the OpenWorld conference at the end of October, Co-Chief Executive Mark Hurd said on a call with analysts.
Ives said Oracle needs to make acquisitions to fuel growth in its cloud business and convince investors who are skeptical of a turnaround.
Acer Inc founder Stan Shih said he would welcome a takeover of the struggling Taiwanese computer manufacturer after a drastic decline in its stock price, while warning any potential buyer would have to pay a heavy amount.
“Welcome,” Shih told reporters in response to a question about whether Acer would be open to a takeover. He added however that any buyer would get an “empty shell” and would pay dearly.
“U.S. and European management teams usually are concerned about money, their CEOs only work for money. But Taiwanese are more concerned about a sense of mission and emotional factors,” he said.
His remarks were first reported by Taiwanese media on Thursday and were confirmed by a company spokesman.
Acer has reported steep on-year sales falls in recent months, including a 33 percent drop in July.
It suffered a T$2.89 billion ($90 million) loss in the first six months of 2015, versus a slight profit in the same period last year. It booked losses for all of 2011, 2012 and 2013 amid cratering PC sales.
Its stock price has fallen by nearly half since early April.
Taiwanese smartphone maker HTC Corp said it will eliminate some jobs and discontinue models as part of its strategy to focus on high-end devices to better compete with the likes of AppleInc and Samsung Electronics.
“The cuts will be across the board,” Chief Financial Officer Chialin Chang told reporters after HTC reported a second-quarter loss and forecast another for the third-quarter. “They will be significant.”
Chang said the cost reductions would extend to the first quarter of next year, but declined to give further details.
A pioneer in early smartphones, HTC has been dismissed by industry watchers as confused, unoriginal and uncompetitive.
The company has been losing market share over the past few years, hit by intense competition at the high-end of the market from the likes of Apple and Samsung Electronics while budget Chinese rivals have also eclipsed its low-cost offerings.
HTC shares have fallen 51 percent so far this year. The stock closed 1.69 percent lower before the results were announced.
Chang said HTC was banking on selling high-end models in emerging smartphone markets such as India, where he said the company has a 20 percent market share of phones priced between $250-$400.
Analysts, however, are less optimistic, saying HTC is likely to continue to struggle for the next four quarters at least.
“We believe HTC will keep losing share in the smartphone market and will keep losing money,” analyst Calvin Huang with Taiwan’s SinoPac Securities wrote in a recent research note.
The last of the console makers is ready to sign up to AMD chips, according to the latest rumor
Some details are now coming to light on Nintendo’s upcoming NX console. The console will be in the shops in a year’s time, but we might know who’s building the NX’s chips.
AMD will manufacture the CPU + GPU combo, giving the outfit total control of the console market. It was pretty much a no brainer. AMD created the APUs found inside the Xbox One and PlayStation 4. Although it is getting increasingly difficult to tell the consoles apart.
AMD’s CEO, Lisa Su, confirmed that the company had a new chip contract. Su said the deal could generate billions, but she did not identify the customer .
It now seems she was referring to the Nintendo deal, which means she is more optimistic about the products’ success than us.
The NX will be based around the Android operating system and should released some time next year. Nintendo is saying nothing about the deal at the moment.
AMD is needs more deals like this if it is going to turn around its dependence on the ever-shrinking PC market. There are only so many consoles that made every year and AMD appears to be inside them all.
Google shares rose by 16.3 percent to $699.62 on Friday, adding about $65 billion to its market value, as strong growth in YouTube viewership eased investor concerns about Facebook Inc’s push into video.
Google’s class A shares chalked up their largest single-day percentage change in more than seven years on Friday.
The surge, which comes a day after it reported better-than-expected profit for the first time in six quarters, sent the Nasdaq composite index to a record intraday high.
The rise in Google’s market value was more than the total market capitalization of Caterpillar Inc, the world’s biggest construction equipment maker.
Google’s shares hit a record high of $703, valuing it at $471.50 billion and cementing its position as the world’s second most valuable company after Apple Inc.
At least 27 brokerages raised price targets on Google’s stock, with analysts also welcoming new Chief Financial Officer Ruth Porat’s emphasis on disciplined spending.
At the highest price target of $800, Google would be valued at $545 billion. Apple is valued at about $740 billion.
The energy brought to Google by Porat, who joined in May from investment bank Morgan Stanley, is likely to drive the stock in the short and medium term, analysts say.
“She is known to be tough as nails when it comes to expense management …,” FBN Securities analyst Shebly Seyrafi said. “A lot of investors are comforted by the fact that her first quarter as CFO, reporting, she is delivering.”
And many advertisers, analysts and investors say Twitter already has the right person for the job: not interim CEO Jack Dorsey but Adam Bain, the company’s president and head of revenue, who has emerged as an early favorite.
Twitter’s outgoing chief executive, Dick Costolo, resigned abruptly last Thursday amid pressure from investors to increase the user base and improve what’s known as direct response advertising, the most lucrative type on the microblogging site.
Those ads prompt users to take an action, such as signing up for a website or buying a product. Improving them is central to Twitter’s ability to make more money.
Before joining Twitter in 2010, Bain served as president of the Fox Audience Network where he was responsible for monetizing advertising platforms across News Corp’s web properties. At Twitter, he has helped aggressively grow the advertising platform. He holds many of the company’s most valuable relationship with advertisers and understands the media business, advertisers said, and could help redirect Twitter so it meets advertisers’ demands and makes more money.
For now, advertisers hope the management change will “light a fire” under Twitter, said Adam Epstein, chief executive of ad Marketplace, which works with search advertisers. Even though they have discussed ways to improve advertising with Twitter executives, the company has been slow to change.
“When you talk to Twitter, you can throw some great ideas on a whiteboard, but there seems to be a lack of urgency,” Epstein said.
They also hope Twitter makes the site easier to use so that more people become regular users and click on ads. Advertisers also want Twitter to provide data that allows them to gather more information on consumers.
Last week, Asus Chairman Jonney Shih said he wouldn’t dismiss the possibility of buying HTC.
Such a move could help both companies: Asus has been trying to move beyond its traditional PC business into sales of Android smartphones, and acquiring smartphone maker HTC would boost its market presence. It could also provide support for HTC, which has seen its market share dwindle in the face of tough competition from Apple, Samsung Electronics and Chinese smartphone vendors.
Such arguments hold no sway with HTC, though.
“We didn’t contact Asustek, and will not consider the acquisition,” the company said in a posting to the Taiwan stock exchange on Monday.
With a deal out of the question — at least as far as HTC is concerned — both companies will need other strategies.
Asus is counting on organic growth in its smartphone business. This year it aims to ship 17 million phones, double last year’s total, but still a tiny fraction of the global market. It has already started selling phones in the U.S. in a bid to reach its target.
HTC’s future financial performance remains in question. Earlier this month, it revised its financial outlook for the second quarter, and said revenue would be down further than expected on slower demand for high-end phones. In the past three months, the company’s stock price has also dropped by almost half.
In March, HTC founder Cher Wang took over as CEO, with the hope of engineering a turnaround. She has said the company will cut operating costs, and look for opportunities outside selling handsets.
For a while now, people had been wondering what the next Wii would be called, with smart money being on the Number 2. However it seems that the new console dubbed the Nintendo NX has a few surprises under the bonnet.
According to Nikkei Nintendo is planning an Android console so that game developers would be able to port their games over with relative ease.
This could also indicate that games developed for the Nintendo NX could extend to other Android-powered devices like smartphones and tablets, play nice with the console.
Games developers have been ignoring the Wii U in droves so this might actually help Nintendo get back into the race.
Android-powered consoles have appeared before but they died horribly in the market place.
There’s something genuinely surreal about sitting down to write an article about region locking in 2015. It feels archaic and almost nostalgic; I might as well be writing something about blowing into cartridge ports to get games to work, or bemoaning the long load times for cassettes. Yet here we are. Years into the era of digital distribution, long after we reached the point where it became technically harder to prevent customers from accessing games from anywhere in the world than it is to permit the same, region locking is back in the news. Thanks, Nintendo.
The focus of this week’s headlines is the Humble Bundle promotion which Nintendo is running for a number of indie titles on 3DS and Wii U. It’s a great deal for some excellent games and is raising money for a solid cause; plus it’s wonderful to see console platform holders engaging with the Humble Bundle approach, which has been so successful at bringing indie games (and other creative works) to wider audiences on the PC. It ought to be a win, win, win for Nintendo, gamers and indie developers alike.
Unfortunately, though, the bundle only works in the Americas; North America and some bits of Central and South America. Customers elsewhere are entirely locked out, a matter which has been a source of deep frustration not only to those customers, but also seemingly to Nintendo’s own staff working on the project. The result is that what ought to have been a straightforward PR win for the company has turned bittersweet; there has been more widespread news coverage of the region locking debacle in the past few days than there has been for the bundle itself.
Although this is a terrible shame for the developers involved – and I sincerely hope that Nintendo can pull its thumb out of its backside and launch an international version of the bundle in short order – no sympathy is due to Nintendo in this situation. It’s a problem entirely of the company’s own making; the firm made a deliberate and conscious decision to embrace region locking even as the internationalisation of digital distribution made that look increasingly ridiculous, and until that stubbornly backwards piece of decision making is reversed, it’s going to continue causing PR problems for the firm, not to mention genuine problems for its most devoted customers.
Remember, after all, that the rest of the gaming world has ditched region locking en masse – Sony gave it up with the PS3, even making it painless to use digital content from different regions by creating multiple accounts on the same console, while Microsoft made region locking optional on Xbox 360 (making a bit of a mess where some publishers enforced it and others didn’t) before ditching it entirely on the Xbox One. At the same time Nintendo, ever the merry contrarians, went the opposite direction, not only maintaining region locking on the Wii and Wii U, but even extending it to the 3DS – in contrast to the company’s prior handheld consoles, which had been region free.
The idiocy of a region locked handheld is staggering; these are systems which are quite simply at their best when you’re traveling, yet lo and behold, Nintendo don’t want you to buy any games if you go on holiday or on a business trip. The excuses trotted out were mealy-mouthed corporate dishonesty from start to finish; it was all about protecting customers, honest, and respecting local customs and laws. Utter tosh. Had those things been a genuine issue, they would have been an issue in the previous decades when Nintendo managed to sell handheld consoles without region locking; they would also have been an issue for Sony and Microsoft when they removed region locking from their systems.
In truth, there’s only one reason for region locking in this day and age – price control – and Nintendo’s calculation must have been that they had more to lose from the possibility, real or imagined, of people buying cheaper 3DS games from countries overseas, than they had to lose from annoying a chunk of their customer base, be they keen gamers who wanted to try out titles unlikely to be released in their regions, expats who want to play games brought from their home countries or parents who find that a game bought in the airport on the way home from holiday results not in a pacified, happy child on the flight but in an angry, upset child with a game that won’t work.
In Nintendo’s defence, Satoru Iwata has recently been musing publicly about dropping region locking from the Nintendo NX, whenever that turns up. That the company is clearly planning to move down that path does rather confirm that it’s been fibbing about its motivations for region locking all along, of course, which might be why Iwata is being cautious in his statements; it’s a shame if such face-saving is the reason for Nintendo failing to keep up with industry moves in this regard, because the company is going to keep being periodically beaten with this stick until the problem is fixed.
Admittedly, there would be problems with removing region locking from its existing consoles – not least that Nintendo’s agreements with publishers probably guarantee the region locking system, so even if it could be patched out of the 3DS and Wii U with a software update, that can’t happen legally due to the contracts it would breach. What Nintendo could and should do, however, is to offer gamers a gesture of good faith on the matter by dropping region locking from all its first-party software from now on – and perhaps emulating Xbox 360 era Microsoft by making it optional for third-party publishers as well. I can envisage no legal barrier to that approach; it would earn the company enormous kudos for responding to its audience and dealing with the problem, and would cost them precisely nothing. There aren’t that many easy PR wins floating around the industry right now; Nintendo should leap on this chance to show itself to be on the customers’ side.
Wheels turn slowly in Kyoto, though, and it’s probably too much to expect the company to react in a startup-like way to the region locking issue. In some ways it’s Nintendo’s strength that it reacts slowly and thoughtfully rather than jumping on every bandwagon, but in recent years, it’s also been a weakness far too many times – and the thoroughly wonderful software that the company has been turning out in the past few years, perhaps the finest line-up it’s produced in decades, has been regularly undermined by bad decisions in marketing and positioning of its platforms, many of which can be traced to a failure to understand where the market is and where it’s moving.
Region locking isn’t the biggest problem. Fixing it would be cheap and easy but would hardly be a panacea for Nintendo’s issues – but it’s a problem that’s symptomatic, emblematic even, of the broader problems Nintendo has with putting its customers first and applying the same care and attention to its corporate aspects which it always applies to its software development. Fix a problem like this in a proactive, rapid way, and we might all start to believe that the company has what it takes to get back on top.
Salesforce shares rose from $71.4 to $75.82 in about a minute late Tuesday afternoon, after which trading was temporarily halted.
The stock closed 1.6 percent higher at $72.75. Microsoft shares closed down 1.3 percent at $47.60.
Microsoft is evaluating a bid after Salesforce was approached by another potential buyer, Bloomberg reported, citing people with knowledge of the matter.
Microsoft is not in talks with Salesforce, and no deal is imminent, the report said.
Microsoft declined to comment, while Salesforce could not immediately be reached.
Bloomberg had reported last week that Salesforce was working with financial advisers to help it field takeover offers after being approached by a potential buyer.
The news sent the company’s shares up as much as 17.3 percent to an all-time high of $78.46 last Wednesday.