Apple posts Q2 revenue of $13.5 billion, profit of $3.07 billion

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Date: Tuesday, April 20th, 2010, 15:06
Category: Finance, News

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Delivering its second quarter financial results on Tuesday, Apple announced that the company sold 10.89 million iPods during the quarter (compared to sales of 11.01 million iPods in the year-ago quarter, and down 48% from the previous quarter) and 8.75 million iPhones in the quarter (a 131% increase year-over-year, and up from 8.7 million units in the prior quarter).

Per iLounge, Apple posted revenue of US$13.5 billion and net quarterly profit of US$3.07 billion, or US$3.33 per diluted share, compared with revenue of US$9.08 billion and net quarterly profit of US$1.62 billion, or US$1.79 per diluted share in Q2 2009.

International sales accounted for 58% of the quarter’s revenue and sales of Other Music Related Products + Services were up 27% from the year-ago quarter, and 14% from Q1 2010, to US$1.3 billion total.

Notably, the numbers from Q2 2009 are different from those originally reported due to Apple’s change in accounting rules that sees the company now recognize “substantially all of the revenue and product costs from the sales of iPhone and Apple TV at the time of sale,” instead of accounting for the sales over a 24-month period.

“We’re thrilled to report our best non-holiday quarter ever, with revenues up 49% and profits up 90%,” said Steve Jobs, Apple’s CEO. “We’ve launched our revolutionary new iPad and users are loving it, and we have several more extraordinary products in the pipeline for this year.”

“Looking ahead to the third fiscal quarter of 2010, we expect revenue in the range of about US$13.0 billion to $13.4 billion and we expect diluted earnings per share in the range of about US$2.28 to US$2.39,” said Peter Oppenheimer, Apple’s CFO.

Princeton University analyzes iPad Wi-Fi bug, offers workaround

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Date: Tuesday, April 20th, 2010, 10:13
Category: How-To, iPad

Following up on the notorious wireless glitch in the iPad wherein an Internet Protocol (IP) address of the iPad fails to correctly refresh, or “lease”, its address, the Office of Information Technology at Princeton University looked into the issue.

On Tuesday, Princeton issued a report stating that the iPad will incorrectly continue using an IP address without renewing the lease, usually for hours. The issue is resolved when the iPad asks for a new DHCP lease, or the iPad disconnects from the network.

The information suggests it is a software issue within iPhone OS 3.2, and is likely something that Apple could repair through an update to its mobile operating system.

The problem was found to be common on Princeton’s campus, with 25 out of 41 of all iPads demonstrating the malfunction as of April 18th. If that ratio bears out on a larger scale, there are likely a huge number of iPad owners experiencing similar issues, as Apple sold more than 500,000 devices in its first week.

The report noted that some devices have demonstrated the malfunction several times, and eight devices were outright blocked from the university’s network.

“When a DHCP client malfunctions this way repeatedly, Princeton blocks the device from using those campus network services which rely on the device’s DHCP client respecting lease times,” the IT office said. “These include our wireless services. We do this to protect other customers of those services from the disruptions caused by the malfunctioning devices.”

The university has published a temporary workaround for the issue, but has stated that it is working with Apple and providing them with technical data in hopes of solving the problem. That data was sent to Apple on April 7th.

The Information Technology office also noted that it has been incorrectly attributed with diagnosing the cause of Wi-Fi signal issues or connectivity issues that have been widely reported by iPad users. The university noted that information is inaccurate, as its documentation relates only to a DHCP client issue, not Wi-Fi signal or connectivity issues.

Princeton has been able to replicate the problem regularly by allowing the iPad to lock its screen before the DHCP lease renewal time, and allowing it to remain locked, with the screen off, until the DHCP lease has expired.

The current workaround has users reconfigure the iPad’s settings so that the screen never locks. This can be accomplished by going to Settings, General, Auto-Lock and choosing “Never.” Users must also turn off Wi-Fi before they manually lock the screen, turn the iPad completely off (rather than just locking it), or simply leave the iPad on without locking the screen.

Soon after the iPad was introduced earlier this month, users began to report connectivity issues with the device. One of the most common problems experienced relates to rejoining a Wi-Fi network after the iPad has been restored from sleep. Apple responded by issuing a support document.

iPad 3G to arrive in stores on April 30th

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Date: Tuesday, April 20th, 2010, 08:29
Category: News

In the midst of the delays surrounding certain pre-ordered iPad 3G units, Apple announced on Tuesday that the 3G-enabled iPad would arrive for those who have pre-ordered it on Friday April 30th, the same day that it will make its appearance in stores.

According to Macworld, the rush will begin at 5 p.m. at Apple Stores, most Best Buy locations, some Apple Authorized Resellers, and campus bookstores. As with the Wi-Fi models, customers will be able to set up their iPad in the store for free with the help of an Apple employee.

The 3G model comes in at 1.6 pounds to the Wi-Fi iPad’s 1.5. That and a small black plastic antenna window along the top of the unit make up the only real hardware differences between the two. As mentioned before, the 3G model arrives at a US$130 premium and will be available in 16GB, 32GB, and 64GB capacities retailing for US$629, US$729, and US$829 respectively.

While some have wondered about the impact the 3G capability will have on the iPad’s otherwise stellar battery life, Apple is promising nine hours of battery life while browsing the Web on 3G.

Users will be able to subscribe to and manage 3G service from the device itself, with AT&T offering a US$15 per month plan with a 250MB data cap and a US$30 per month plan offering unlimited usage. Unlike the iPhone, users can subscribe to and cancel 3G service whenever you like.

Stay tuned for additional details as they become available.

Apple demands iPhone 4G prototype be returned from Gizmodo

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Date: Tuesday, April 20th, 2010, 05:37
Category: iPhone, News

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Following up on Apple’s discovered iPhone 4G prototype: Apple wants it back.

Per Macworld UK, Gizmodo editor Brian Lam has posted an official letter he received from Apple requesting that the device be returned immediately.

Gizmodo believes that such official communication proves the device is real. However, it should be noted that this does not necessarily mean that the device is the next iPhone and could simply be a prototype.

The device was reportedly found by an anonymous bar-goer at Gourmet Haus Staudt, a German beer garden in Redwood City, near San Francisco. The phone was discovered on a barstool at midnight on Thursday, March 19th.

The person who found the phone asked around the bar to see if anyone had lost an iPhone 3GS (the phone had a case on it that made it look like a 3GS), but nobody claimed it. The person then unlocked the phone and found the Facebook page of Apple software engineer, Gray Powell, still signed in. The person decided to try to return it in the morning.

Gizmodo says that the person woke up to find the phone dead thanks to Apple’s MobileMe service, which allows users to wipe their stolen iPhones of all data, remotely. The person then noticed the phone looked different from other iPhones (for instance, the unit’s front-facing camera) and managed to remove the “disguise” case. Upon discovering that this iPhone was not like any other iPhone out there, this person promptly forgot their promise to find Gray Powell and return the phone, and started selling to the highest bidder.

Nick Denton, the head of Gawker Media and publisher of Gizmodo, tweeted earlier Monday, “Yes, we’re proud practitioners of checkbook journalism. Anything for the story!” and “Does Gizmodo pay for exclusives? Too right!”

Per AOL’s Daily Finance, web site Engadget was offered the chance to bid after the site published the first photos of the prototype, but declined. Engadget editor in chief Joshua Topolsky says he doesn’t believe in checkbook journalism as “it encourages awful behavior in tipsters.”