Sunday, April 17, 2011

All-Time Record Profits for Silicon Valley in 2010; There's A Renewed Level of Energy and Optimism

Mercury News --"Roaring back from the Great Recession, the 150 biggest public companies in Silicon Valley had their most profitable year in history in 2010, as their combined stock value climbed to the highest level since the Internet boom of 2000. Revenue and profits soared as consumers flocked to buy new handheld gadgets, while corporations and public agencies resumed buying hardware and software to handle a rising tide of digital data -- from emails, tweets and videos to all manner of online transactions and Internet search results.

Those trends drove tech sales and profits higher than they were before the downturn of 2008 and 2009. For companies on the Mercury News' SV150 list, combined sales for the past four quarters rose 20.3% from a year earlier. Combined profit skyrocketed 78.6%. The list comprises the 150 biggest public companies, measured by revenue, that are based in Silicon Valley.

Apple (AAPL) led the way in profit, posting a stunning $16.6 billion in net income from its iPads, iPhones and other stylish gadgets. All told, the SV150 companies had a net profit margin of 15.6 percent -- the richest margin, by far, since the Mercury News began tracking the SV150 in 1985. Investors, for the most part, liked what they saw: The combined stock market value of the SV150 hit $1.55 trillion on March 31, up 11.4 percent from a year earlier.

Companies from startups to giants are moving into social networking and mobile computing -- new technologies that are luring consumers and workers into spending more time online, creating more data and spurring more sales for Silicon Valley businesses.  These new technologies gained traction even in "the darkest period" of the recession, Accenture's John Walsh said. Now, they're part of what he called a renewed level of energy and optimism in Silicon Valley."


At 4/17/2011 10:48 PM, Blogger Rufus II said...

How much did they pay in U.S. Income Taxes?

At 4/17/2011 11:06 PM, Blogger Rufus II said...

Apple has $30 Billion parked overseas.

Intel has $12 Billion parked overseas.

Either, last year, or the year before, Microsoft has $36 Billion in cash, but borrowed $6 Billion for Capital/infrastructure projects because to bring their money back home they'd have to pay taxes on it.


At 4/17/2011 11:27 PM, Blogger Benjamin Cole said...

Boom, baby, boom. I like the sound of that.

Let's hope Apple and Intel join the USA party--a cheap dollar might make expanding operations here very enticing....

At 4/18/2011 12:25 AM, Blogger Rufus II said...

You don't overcome a 35% tax rate with a 10% weaker dollar.

Only the Politicos can fix that mess.

Until they do those "silicon valley" profits will be building factories in India, China, and Ireland.

Of course, that could be the plan.

At 4/18/2011 6:27 AM, Blogger juandos said...

"How much did they pay in U.S. Income Taxes?"...

Hopefully none...

Why should their earning go to support societal parasites?

At 4/18/2011 7:20 AM, Blogger Bernie Ecch said...

So how many of those 1.15 million jobs that California has lost over the last three years (according to a recent post on this website) have come back?

At 4/18/2011 7:38 AM, Blogger juandos said...

"So how many of those 1.15 million jobs that California has lost over the last three years (according to a recent post on this website) have come back?"...

Considering present California conditions why would jobs come back to that state?

At 4/18/2011 11:22 AM, Blogger Benjamin Cole said...

Parasites? Did someone say paraistes?

Hmmm. Let's see, here is federal employment by agency. Let's think about where parasites may be hidden.

Check out these stats: By employment, largest federal departments:

Defense: 3,000,000
Veterans Affairs 235,000
Homeland Security 208,000
Treasury 115,000
Justice 112,000
Energy 109,000
USDA 109,000

We also have

HUD 10,000
Labor 17,000
HHS 67,000

At 4/18/2011 12:55 PM, Blogger bob wright said...

According to the Democrat party brain trust, these evil iPads are killing jobs.

I'm confused. Is the democrat party against hi tech jobs?

At 4/18/2011 1:24 PM, Blogger Benjamin Cole said...


Actually, what Jackson said is that the iPad will wipe out a lot of retail jobs, and I think there may be truth in that. He did not indicate a total net job loss for the USA.

I wonder if if Jackson is economically literate enough to understand that when technology increases output there is not a loss of jobs, but only better organization of jobs.

Cutting the Department of Defense payrolls would not eliminate jobs either, and would have beneficial effects for the economy, just as the iPad does.

At 4/18/2011 2:33 PM, Blogger Ron H. said...

bob wright

"According to the Democrat party brain trust, these evil iPads are killing jobs.

I'm confused. Is the democrat party against hi tech jobs?

They are both for AND against hi tech jobs. What's confusing about that?

You just happened to sample that particular mental giant on a day when the theme was "kills jobs".

As your reference points out, he also recently claimed that an iPad was a civil right, equal in importance to our other inalienable rights.

I believe he said something like this:

"A correctly educated population, being necessary to the perpetuation of a progressive state, the right of the people to keep and bear iPads, shall not be infringed."

Apparently, politicians have found iPads to be a versatile tool that can be used to support almost any viewpoint.

At 4/18/2011 3:09 PM, Blogger Paul said...

Benji now defending a moron like Jesse Jackson Jr. It was just recently he said we could create an economic boom by changing the Constitution to guarantee every kid an ipod and a laptop

At 4/18/2011 9:56 PM, Blogger Hydra said...

Rufus -2, Ben -1, everybody else zero.

At 4/19/2011 11:34 AM, Blogger VangelV said...

Wonderful news for the investors in Apple and the profitable players in Silicon Valley. They are finally getting the types of profits that the share prices were predicting. But if you look at earnings adjusted for inflation the picture is not as bright as it may appear at first glance. The profit has been created by a massive injection of liquidity across the globe. Looking at nominal prices and pretending that they are real is foolish.

Now let us look to a stock like Intel, Microsoft, Oracle, Nividia, Broadcom and compare it to Goldcorp over the past decade. Which do you think did best? The only technology stock that has really done well over the past ten years is Apple. Since 2000 its performance overwhelms that of its peers and has been about equal to that of G.

Sorry but I do not see the news to be as great as Mark claims. Let us wait until after all of the liquidity injections are over to see what happens.


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