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The chief executive, Thorsten Heins, promised results would show the company breaking even in the next quarter, based on a "lower cost base, more efficient supply chain, and improved hardware margins".
Q: What will your hardware margins be at scale?
However thin hardware margins mean the business needs an alternative strategy to monetize these sales.
As hardware margins keep getting squeezed, that software component becomes more and more important.
One purchased game leads to another and another, and like the classic strategy of giving away razors to make long-distance profits on the blades, the money is in the software royalties, not the hardware margins.
But for the first six months of the year, TiVo posted net income of $6.6 million, compared with a loss of $16.9 million in the same year-ago period, primarily due to cost cuts and higher hardware margins.
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They used to have the best hardware margin - double-digit [ie over 10%] - while Acer, for instance, has been losing money".
Chrystalla Labesque, PC analyst at research company IDC, points to Dell as a classic example: "It was the leader in pushing costs down, and adding additional services as a way to improve their hardware margin - so when selling notebooks to consumers, they would offer antivirus and notebook accessories.
ThingThing then shares revenue with OEM partners, so that's another carrot for them — offering a services topper on their hardware margin.
Here, the revenue stream is not tied directly to the initial sale, and can conceivably scale well beyond the hardware margin that is generated.
HTC reported its first loss-making quarter back in October 2013, and ever since the company has been struggling to turn its smartphone fortunes around in the face of increasingly fierce competition and a squeeze on hardware profit margins.
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