Tech wrap: Google profit expectations eat dust
Google’s third-quarter results trounced Wall Street expectations as good cost controls helped boost the Internet search leader’s profit by about 26 percent. The world’s No. 1 Internet search engine said its net income in the three months ended September 30 totaled $2.73 billion, up from $2.17 billion in the year-ago period.
Analysts applauded Google’s results. “Christmas came early for Google shareholders. It’s all about the core business. You drive that extra revenue and expense becomes secondary. It was a great beat on the bottom line. It’s not necessarily because they are controlling expenses. It’s because they are driving more revenue”, said Colin Gillis of BGC Partners.
RIM’s co-CEOs apologized to millions of BlackBerry customers for a four-day outage that tarnished it’s image and set back the drive to catch up with Apple and other smartphone rivals. The service disruption could cost RIM millions of dollars in compensation to customers who lost service. The company did not say for certain whether it would compensate customers. Public relations specialists said its response to the crisis has been slow and poorly communicated.
Spotify, the European music streaming service backed by digital entrepreneur Sean Parker, has more than 250,000 paying users in the U.S. since it opened up shop in July, according to three people familiar with its data. Digital music subscription services are hoping to pick up the slack of lost CD sales for the music business by offering large libraries of songs for an-all-you-can-eat monthly fee by streaming songs over computers, mobile devices and more recently in cars.
A court slapped a temporary ban on the sale of Samsung’s latest Galaxy tablet in Australia, handing rival Apple another legal victory in the two firms’ global patent war. Whilst the ruling is a blow for Samsung, the Australian market is not large. A more important legal battle starts later today, when a Californian court begins hearing Apple’s bid to ban sales of Galaxy products in the United States.
Netflix’s U.S. customers will be able to watch shows like “Gossip Girl” and “The Vampire Diaries” online after it signed programing deals with CBS and Warner Bros for shows from their joint venture, The CW television network. Under the pact, older-season episodes of some shows, including “One Tree Hill” and “Nikita”, will available October 15 while others are set for January.