loss

Financial news for HTC continues to get worse with the company now chalking up another $40m (US) loss. From underperforming on smartphone sales to “restructuring” its investment in Beats audio, HTC is not having a good time of it. The hit this time comes from the cloud gaming service OnLive.

HTC’s hope, was that cloud gaming could help bring high end games to those without the beefy hardware to pull it off. Other big players such as AT&T, Autodesk and Warner Bros also had a stake. OnLive almost went bankrupt due to the huge investment it needed to make on infrastructure to power their gaming service.

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This morning LG Electronics reported to the Korea Herald that they have no immediate plans to introduce new Windows Phone to the market. Instead LG are focusing on Android for their future smartphone releases noting that "The total unit of Windows Phone sold in the global market is not a meaningful figure."

The company claimed that the partnership between it and Microsoft remains good but the plan to focus on Windows Phone, announced in 2009, has not worked out for them financially. LG ended up losing money for seven straight quarters and only recently turned a profit. As a result they lost a lot of market share, especially with HTC and Samsung having a winning portfolio of Android devices.

Regarding Windows Phone specifically, a spokesperson for the company told the Herald that they will “continue research and development efforts” on Microsoft's mobile OS.

This news comes on the heels of an announcement of Steve Ballmer headed to Seoul Digital Forum on May 22 where he will be meeting with various business and developers. Though LG claims to not know his business schedule the implication is that Ballmer may meet with LGE for some damage control regarding their recent smartphone decision.

One can claim that LGs offerings for Windows Phone have been extremely lackluster with only the LG Quantum (review), limited to AT&T and a few regional carriers, showing any real innovation. And despite being only one of two hard-keyboard Windows Phone devices it never sold well anywhere. Even the LG Jil Sander phone was a bomb having its price constantly cut, in fact when we got our hands on it we panned the phone as feeling cheap and unexciting.

While prototype devices like the E740 remain floating around (we'll have our mini-review of it later today), the phone is a far cry from anything interesting and would do nothing for LG or Windows Phone were it to be released. It's one unique feature, NFC, has very little support in most major markets in 2012.

Clearly LG is facing stiff competition, poor R&D and they are feeling the pressure from the Microsoft-Nokia partnership which they commented on in 2011. Perhaps they will use this to leverage a favorable deal from Microsoft if Ballmer meets with them later in May. While it could look bad to lose a major OEM like LG, we're not exactly too saddened either.

Clearly Nokia, HTC and Samsung are the future of Windows Phone.

Source: Korea Herald

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Nokia has released its fourth quarter financial report for 2011. While the good news is that the company is reporting the shipment of over 1 million Windows Phones, the bad news is that Nokia has experienced the third straight quarterly loss.

Nokia's revenue dropped 21% from last year and profit dropped from €884 million (about $1.1 billion U.S) to €954 (about $1.25 billion U.S.) loss. While Nokia is pleased as punch about shipping over a million Windows Phones, overall smartphone revenue dropped 38% and overall smartphone shipments dropped 8%.

On the positive, Nokia reported an infusion of €180 million ($250 million U.S.) from Microsoft in the form of platform support payments. The strategic agreement with Microsoft covers both platform support from Microsoft and minimum software royalty payments from Nokia to Microsoft. The life of this strategic agreement is expected to measure in billions of US Dollars.

Overall, Nokia's CEO Stephen Elop was pleased with the performance of their mobile phones business citing the release of the Windows Phone Lumia series (Lumia 710 and 800), introducing the series to consumers in Europe, Hong Kong, India, Russia, Singapore, South Korea and Taiwan.

With the third straight quarterly loss, Nokia's hopes are likely riding on the company's re-entry into the North American Market (with the T-Mobile Lumia 710 and AT&T Lumia 900) and the success of the Windows Phone line world wide. Additional expansion will see the Lumia Windows Phones to China and Latin American markets during the first half of 2012. Hopefully, the global distribution will stop the downhill slide and give Nokia a positive first quarter report in 2012.

You can find all the numbers and stats from Nokia's fourth quarter report of 2011 here at Nokia.com.

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