Archos sells more tablets than Asus and Acer, has Europe’s number one sub-400€ tablet market share

Posted by – February 16, 2012

Archos worldwide revenues increased 106% in 2011 compared to 2010. For the tablet sales in Europe, Archos is the second biggest tablet maker tied to Samsung. For the sub-400€ tablet market in Europe, Archos is the number one. Archos yearly tablet sales in Asia has exploded 464% going from 4,4M€ to 24,9M€ in revenue.

Think about it for a second. Archos is a 250-employee company based in Paris, and they are the European leader for the sub-400€ tablet market, they are virtually tied with the Samsung tablet sales in Europe and they are far in front of giants like Asus, Acer, Motorola, Toshiba, LG, Huawei, ZTE, HTC tablet sales in Europe.

Archos revenue from US sales “only” increased 57% year/year from 18,2M to 28,6M, my theory is because Archos has to prioritize where to spend their cash for production and distribution. Just as the Samsung Galaxy S2, Galaxy Note were released in Europe and Asia before the USA, Archos also has to choose to prioritize shipments to the European and Asian market, some markets also where Archos may be able to extract larger margins and satisfy resellers more evenly (a US reseller constantly having to be out of stock gets angry..). Over the past 3-4 months, monitoring the forums at http://forum.archosfans.com one can see hundreds of messages of American consumers being somewhat dissapointed not being able to buy the latest Archos G9 series of tablets, and due to Texas Instruments OMAP4460 1.5Ghz Processor being delayed, Archos can only really start shipping that promised 1.5Ghz tablet speed since recently. Also to consider, Archos has yet to annonce a 3G/4G/LTE USB Stick carrier for the US market, as the US market isn’t compatible with the rest of the worlds open unlocked 3G/HSPA+ SIM card USB stick system (I do believe some carrier, at least an MVNO should soon be allowing Archos provide a USB stick compatible with their network).

Consider this, Archos is a 250-employee company, with currently their record yearly revenue at 171,4 Million Euros ($224.669 Million). Apple has 60400 employees and a 2011 revenue of $108.249 billion. That means Archos makes 481 times less revenue than Apple. Yet, Archos manages to be second largest tablet seller in Europe behind Apple and tied with Samsung.

My theory is that if/when a company like Archos can get access to more cash, they can increase the mass production of their products and I think Archos has no problems selling out of all of their inventory, pretty much regardless of the worldwide region. The likely upcoming Socialist French President Francois Hollande (likely to be elected April 2012 instead of Nicolas Sarkozy) can make it a National priority to use State cash to invest in promising high-tech companies like Archos, France can heavily and rapidly invest in Archos to help Archos grab even more worldwide market share in a tablet market analysts predict to more than double again in 2012 compared to 2011. More investments can create a situation where Archos can expand R&D and Marketing/Sales efforts in Paris, thus upgrading firmwares even faster, developing new hardware skews faster, optimizing manufacturing and BOM techniques faster, something Archos can use to increase the value for money even faster making it even easier to sell all stock regardless of volume produced. With significantly more cash for more production, faster R&D, I believe Archos can grow and be the French high-tech company to seriously compete with Apple worldwide.

The Android tablet market has exploded in 2011. I believe the daily Android tablets activations worldwide has now overtaken the iPad2. The regular stack of analysts will only demonstrate that when they estimate Q1 2012 tablet sales in early April. I base my estimation on the fact most major latest Android tablets were released not before December 2011 (Archos G9, Kindle Fire, Nook Tablet, Motorola XyBoard, Samsung Galaxy Tab 7.0, Samsung Galaxy Tab 7.7, etc), thus counting since December 2011 (and not October 2011 as the latest analysts have) positions Android tablets even more favorably against the iPad2. If you count the Samsung Galaxy Note as a tablet (which most analysts aren’t), it’s even more obvious that Android tablets daily activations have overtaken the iPad.

With excellent value for money in Archos ICS-capable tablets, such as the $279 Archos 101 G9 Turbo 1.5Ghz, the $229 Arnova 9 G2, the $199 Archos 70b Internet Tablet and the $149 Arnova 7b G2, all of them imminently fully running Ice Cream Sandwich, (all those are MSRP prices, street prices can be 20-30% lower than MSRP with volume) I believe Archos is well positioned to continue their growth in tablet market share. It’d be awesome to see Archos find the time to also provide an OMAP4460 1.5Ghz 7″ Kindle Fire killer (at around $249) and a 5″ Galaxy Note killer (at around $199) tablet with USB 3G/4G/LTE stick support as my favorite tablet sizes are 7″ jacket pocket sized and 5″ pants pocket sized.

Revenue for the fourth quarter 2011

In M€ non audited Q4
2011
Q4
2010
Var
(M€)
Var
(%)
EUROPE 46,3 24,6 21,7 88%
ASIA 8,7 2,2 6,5 300%
USA 10,2 8,8 1,3 15%
TOTAL 65,2 35,6 29,6 83%

 

Total revenue for 2011

In M€ non audited 2011 2010 Var
(M€)
Var
(%)
EUROPE 117,9 60,7 57,2 94%
ASIA 24,9 4,4 20,5 464%
USA 28,6 18,2 10,4 57%
TOTAL 171,4 83,3 88,1 106%

 

Yearly revenue (Million €)

2009 : 57,9 ($76M)
2010 : 83,3 ($109.5M)
2011 : 171,4 ($224.7M)

Source: Archos Q4 2011 earnings press release on abcbourse.com, boursier.com, easybourse.com and investir.fr

  • http://ARMdevices.net/ Charbax

    France under Sarkozy was corrupt and moronic, has absolutely nothing to do with the technology investments coming with Francois Hollande in the weeks and months to come. High-tech jobs is the number 1 priority for Francois Hollande. Boring and crappy manufacturing jobs are not the future of France. The future is technological innovation, export, technological domination over the USA, Asia is France’s only hope.

  • Jean2011

    All that leftist socialist beliefs. Archos does not seek french gvt investment in their business. What the ownerswill are much more scared about is that Mr Holland new French psdt will tax all the French with higher revenues and belongings. 45% on middle class and 75% upper middle classe on incomes from 25/40% during Sarkozy. Every year 1.8% on possessions. LOL ! This is communism !
    The French christians voted at 60% for Sarkozy, the muslims, recent immigrants from Africa, voted at 93% for Holland. The French of french origin voted at 55% for Sarkozy, those including the atheists who voted for Holland at 66% and the Brittons who voted at 55% for Holland. Someone working on polls also admitted that immigrants from sub saharan Africa are voting at more than 90% for Holland whatever they are muslims or christians…
    Mr Melechon,Holland communist ally wants France to become an enemy of the US, Russia and Northern Europe, not to pay Frances debt and to get out of the UE and make a new Union with all the Arab and African countries, communist countries from south America and ally China against the US. This guy only got 11% because his supporters felt it was more useful to vote Holland to help beat Sarkozy.

  • Un passant

    End or the story indeed.. Archos just published Q2 results. In a market growing 100% the are at -3% against last year. They are loosing ground in Europe, Samsung is now in front as well as apple in the sub 400 euro market.

    They are shrinking, they are collapsing, they maintained somewhat the business by eating their margin and issue a second profit warning in Q2.

    Stock price has plummeted already 50% since the high of march
    Reviews for latest carbon generation is negative…

  • http://ARMdevices.net/ Charbax

    Sure yea, $93 Million revenue in the first 6 months of the year for a 150-employee Company is collapse. This means over $300 Million revenue for the year, +50% compared to last year. Archos stock grew 20% during the week before last. It’s a small cap, that basically means stock price means nothing, investors by definition don’t know what the company is about.

    With a G10 XS coming up that’s going to realize the first OMAP4470 Android Tablet/Laptop convergence at sub-$300, basically realizing all the Microsoft Surface features but way more attractively in Android or RT dual-boot, with Archos Elements bringing dual-core 7″ at sub-$100, dual-core 10.1″ 1280×800 and 9.7″ at sub-$200, and the Arnovas doing Single-core Jelly Bean all the way down to sub-$50, Archos has way than enough guarantee to keep a great market share on the exploding tablet market.

    And at any time the new French Government decides to provide Archos with free unlimited cash funds for strategic expansion of the French consumer electronics market, Archos single-handedly can easily overtake Apple worldwide if needed.

  • archosfanboy

    LOL… Archos just published the details for S1… results are just catastrophic…. Charbax, if you have a minimum of honesty, you should recognize that Archos can’t sell, they have no strategy, they bring zillions of chinese tablets to the market and try to put their brand on them  (look for Aoson M19 for example) and now the company is going down the drain. cash is running low, the stock price is heading even more south and they won’t be able to raise much money…

    their time has come…

  • http://ARMdevices.net/ Charbax

    You’re just jealous because you have no talent, you can’t actually do anything worthwhile on this planet so your only goal is to anonymously trash talk Archos and I have to be the one wasting my time telling you how moronic you are.

    Archos financials are just fine. They decided to pay of long outstanding loan that the only reason S1 financials show a minus, but Archos had the cash to pay for it that is why.

    Archos has absolutely no problem selling their products, Archos sells more tablets in Europe than Asus, Acer, Dell, Motorola (Google), Huawei, ZTE and any other tablet brand that isn’t Apple and Samsung. Now, if that is your definition of a tablet company in difficulties, you obviously have no idea what the tablet market means for consumer electronics and you have absolutely no idea of the value for a French company to be ranked 3rd most popular Tablet in Europe, around in the top-5 in the USA.

  • Let’s be factual…

    Charbax you are making a fool of yourself !

    I just read (I do read French) their S1 document and they clearly state that

    – they have no visibility on the future benefits and this needed to take a huge hit on income tax break they used to consider as an asset. (this has nothing to do with reimbursing a long term loan. That was last year in 2011). What they are saying is they don’t know I they can make a profit and thus need to take a loss on this

    – they state there cash is running low (lost more than half of their cash in S1 2012)

    – they state their stock is too big and they will need to spend an

  • http://ARMdevices.net/ Charbax

    The loan was from tax break from the Government (credit impot/recherche) which is why paying it back looks like a tax in their financials. They didn’t have to pay it back now but that’s what they chose.

  • Alfred

    Ouch Q3 results are in and they are bad…
    Seems all the dancing charbax is doing to say all is fine, no worries is not helping and reality is catching up on Archos…

    They are doomed….

  • http://ARMdevices.net/ Charbax

    You are doomed. You have no understanding of the market. Archos is a 100-employee tablet company that dominates and innovates really. If they cant afford more manufacturing one quarter or the other has little influence on their success.

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  • Jay DMortert

    Ouch Q4 numbers are in… What a difference a year makes….