Research In Motion quarterly adjusted net profit fell 47 percent to $419 million, on revenue of $4.2 billion, hurt by an aging lineup of BlackBerry smartphones that was only refreshed very late in the quarter and tepid sales of its PlayBook tablet. RIM shipped 10.6 million smartphones and 200,000 PlayBook tablet computers in the three months to August 27, sharply below the average estimate of analysts.
Security company McAfee uncovered the biggest-ever series of attacks on the networks of 72 organizations including the U.N., governments and companies around the world and claimed there was one “state actor” behind them but declined to name it. One security expert who has been briefed on the hacking said the evidence points to China.
Netflix says it’s expecting its subscriber growth in the United States to slow in the coming quarter. The warning to investors came as the popular video rental company also reported second-quarter revenue that missed Wall Street expectations. The double-shot of bad news sent the company’s shares down about 9 percent in late trading.
Microsoft reported a greater-than-expected 30 percent increase in fiscal fourth-quarter profit, helped by sales of its Office software, but profit from its core Windows product fell on soft PC sales. Microsoft posted net profit of $5.87 billion, or 69 cents per share, compared with $4.52 billion, or 51 cents per share, in the year-ago quarter. That easily beat Wall Street’s average estimate of 58 cents, according to Thomson Reuters I/B/E/S.
Apple shares neared a record $400, a day after the world’s most valuable technology company posted blockbuster results and triggered a spate of brokerage upgrades. Apple’s climb brought the maker of the iPhone and iPad within shouting distance of Exxon Mobil’s market value of more than $400 billion despite the oil and gas producer raking in more than four times Apple’s annual revenue.
Netflix subscribers could see their monthly bill increase starting this fall. The company announced it is doing away with a combo plan that lets customers watch unlimited movies and TV shows online and get DVDs by mail for $9.99 a month. Starting in September, current subscribers who want both services will have to pay $7.99 per month to rent one DVD plus an added $7.99 for unlimited streaming, for a total of $15.98 a month. That’s an increase of 60 percent. The new pricing begins immediately for new customers. Old-fashioned types who just want DVDs now have the option of an unlimited DVD-only plan that costs $7.99 for one at a time or $9.99 for two at a time. Good or bad news, depending on how you use Netflix.
Apple has kicked its intellectual property dispute with Taiwanese smartphone maker HTC up a notch. The company filed a new complaint against HTC with a U.S. trade panel over some of its portable electronic devices and software, according to the panel’s website. Apple filed a similar action against the company last year and could be trying to strengthen the case against its rival by adding new patents to its claim this time around, notes AllThingD’s John Paczkowski. “It’s another broad warning to the industry,” he writes.“If you’re bringing a new smartphone to market, you had better make damn sure it doesn’t infringe on Apple’s IP.”