Thursday, July 22, 2010

Will Apple, Yahoo measure up to Intel, Google?

Mercury News

Apple — the Cupertino maker of Mac computers and "i" devices (iPad, iPhone, iPod) — and Sunnyvale Internet content powerhouse Yahoo are the next big Silicon Valley companies in the quarterly parade of tech earnings reports.

Both Apple and Yahoo will report financial results tomorrow afternoon after the stock markets close.

While most big Silicon Valley tech stocks were higher today, Apple shares were noticably lower, closing at $245.58, down $4.32, or 1.7 percent, after falling as low as $239.60. According to a story on The Wall Street Journal's website, analysts were concerned about Apple's profit margins — as well as reports of strong sales of the new Droid X (more on that below) after nearly a week of negative publicity over the antenna on the iPhone 4. (Apple's newest iPhone, of course, was introduced June 24, so only the first few days of sales will be reflected in the earnings report. CEO Steve Jobs, meanwhile, said Friday that Apple will provide free bumpers or cases to iPhone 4 owners, which Consumer Reports described as a remedy for the antenna problem its testers found.)

As for Yahoo, it's expected to show a strong increase in online ad revenue, according to a post today on Good Morning Silicon Valley.

Apple and Yahoo earningsw will follow reports last week from Santa Clara chip behemoth Intel and Mountain View Internet advertising juggernaut Google last week. Intel, you might recall, reported a record $10.8 billion in sales, saying corporate customers were making information-technology purchases again. Google, meanwhile, had a big jump in profit and sales, but investors were concerned that its hiring pace might be costing too much money.