Google Industry Analysis

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  • Topic: AdSense, Google, AdWords
  • Pages : 11 (3709 words )
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  • Published : April 30, 2010
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Here is a summary of earnings reports for selected technology companies for the first quarter of 2010 and what they reveal about the state of corporate spending: April 13, 2010: Intel Corp. says net income nearly quadrupled revenue up 44 percent. Intel says corporations are upgrading their employees' computers and buying more servers. April 15, 2010: Advanced Micro Devices Inc. shows a 34 percent increase in revenue and says spending on servers is "pretty healthy." The microprocessor maker's CEO says he is less certain about corporate spending on personal computers. April 15, 2010: Google Inc. says revenue surged 23 percent, its best rate since the summer of 2008. Prices paid for Google's ads were 7 percent higher than the average rate at the same time last year. April 19, 2010: IBM Corp. reports net income gain of 13 percent, revenue up 5 percent. Revenue would have been flat without currency fluctuations but company predicts revenue will rise even without such adjustments in the current quarter. April 20, 2010: Yahoo Inc. reports first revenue growth in 18 months. Although total ad revenue increased just 3 percent, display advertising rose 20 percent. That category includes online billboards that companies use to promote brands. April 21, 2010: EMC Corp. reports net income up 92 percent and revenue up 23 percent. Company questions whether unusual spike in information-technology spending has already ended. April 22, 2010: Microsoft Corp. says net income in the last quarter rose 35 percent. It credits strong sales of the newly released Windows 7. Although businesses have been spending more on new computers and some software, Microsoft says revenue for the group that makes server software rose only 2 percent. April 23, 2010: Xerox Corp. says it lost money because of acquisition charges but says revenue from services and printer and copier supplies rose as corporate spending picked up.

April 26th, 2010
“Back in January, Google made a splash over the Nexus One smartphone - summoning the tech press out to the Googleplex for an introduction to not only the device itself, but also a new way of selling it. You see, Google (GOOG) wanted to reinvent the way consumers shop for and buy cell phones. Pushing away from a model where specific devices are tied to certain carriers, Google had this vision of selling its devices directly to the consumer and then giving them a choice on which carrier to use. It was a valiant effort but was flawed right out of the gate. First, there were questions galore on who would handle offline sales, support and service - Google certainly wasn’t equipped to handle that. Then came the rumblings over what was perceived to be double “early termination fees” - those imposed by the carriers and a separate that would be charged by Google. Now, the company has quietly made one change to its Nexus One online store that suggests - for those of us trying to read deeper into it - that Google may be backing away from its push into the online smartphone sales business. (Techmeme) For months, its site has been pitching the Nexus One for Verizon (VZ) as a “Coming in Spring 2010.” This morning, the language was changed to read: For Verizon’s network, you can buy the Droid Incredible by HTC, a powerful Android phone and similarly feature-packed cousin of the Nexus One”

April 26th, 2010
“Google (NasdaqGS: GOOG - News)—which continues to try to improve its relationship with ad agencies—is now making it cheaper for agencies to manage large search-ad campaigns on behalf of their clients. The company says that it will now provide certified partners with "preferred pricing" for use of the Google AdWords API, which is used to build the apps necessary to manage "large or complex" AdWords accounts and campaigns. The company says it is also launching a directory so that advertisers can more easily find qualified agencies to run their campaigns. Google VP Penry Price tells AdAge that "a lot of people on the agency side...
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