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INTERNET SPACE
Facebook shares profit growth story
by Staff Writers
San Francisco (AFP) July 23, 2014


Android grabs more tablet market share: survey
Washington (AFP) July 23, 2014 - Global sales of tablet computers edged higher in the second quarter, in the slowest growth since 2009, research firm Strategy Analytics said Wednesday.

The research firm said global tablet shipments reached 52.9 million units, up just six percent from the same period a year ago.

Growth was led by devices using the Google Android operating system.

Android tablet sales rose 11 percent to 36.8 million in the March-June period, the survey found, and grabbed a 70 percent market share.

Apple sales fell from a year earlier to 13.3 million, according to Strategy Analytics' figures which were above Apple's own report this week showing 12.3 million.

The research firm said Apple's market share slipped to 25 percent based on the latest decline.

Windows-powered tablets accounted for five percent of the market, with unit sales up some 28 percent at 2.7 million, the survey found.

"Android consolidation continued as it was the chosen OS (operating system) for seven out of 10 tablets shipped in the market," says Strategy Analytics researcher Peter King.

"Android is continuing to make steady progress due to the wide range of vendors and wide range of screen sizes and price-points."

Several analysts have said the tablet market has become saturated in many developed countries and that large-screen smartphones or "phablets" are often being used instead.

Facebook on Wednesday reported that is quarterly profit more than doubled amid big gains in ad revenues and a jump in users.

Net income leapt to $791 million during the three months ended June 30 in a 138 percent increase from the $333 million made during the same period a year earlier, the world's biggest social network said.

"We had a good second quarter," Facebook co-founder and chief executive Mark Zuckerberg said in the earnings release.

"Our community has continued to grow, and we see a lot of opportunity ahead as we connect the rest of the world.

Revenue in the quarter surged to $2.91 billion, with approximately 62 percent of that money coming from ads served up on mobile devices such as smartphones or tablet computers.

Ad revenues overall were up 67 percent from a year ago to $2.68 billion.

Cashing in on the trend of Facebook members increasingly using mobile devices to connect to the social network has been seen by analysts as vital to its success.

The number of people who visited the online social network at least once a month climbed to 1.32 billion in a 14 percent rise from the same quarter last year, according to Facebook. The number of active users on mobile devices rose to 1.07 billion.

- Share price jumps -

Facebook shares jumped more than three percent to $73.80 in after-market trades that followed release of the earnings figures, near record highs for the company that made its market debut in 2012 at $38.

"The numbers look good; this is a very strong quarter for them," said analyst Rob Enderle of Enderle Group in Silicon Valley.

"They look more like a real company now than a dot-com. Tactically, they are doing well."

Facebook could potentially face some push-back from advertisers over how well ads result in people actually spending money on what is being promoted, the analyst noted.

Silicon Valley-based Facebook had a 5.8 percent share of global digital advertising revenue in 2013 and that share is expected to near eight percent by the end of this year, according to industry tracker eMarketer.

Worldwide spending on digital advertising was predicted to hit $140.2 billion this year.

Facebook will likely lay claim to 22.3 percent of the money spent this year on advertising on mobile devices, with Google's share expected to remain about 50 percent, according to eMarketer.

The worldwide mobile ad market should grow by nearly 85 percent this year to reach $32.71 billion, the market tracker forecast.

gc/rl

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