Rumor: Apple field-testing iPhone 4 revision with CDMA support

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Date: Tuesday, October 19th, 2010, 07:16
Category: iPhone, Rumor

It’s a rumor but it’s an interesting one.

Per Boy Genius Report, Apple has begun field testing a new version of the iPhone, prompting continued speculation of an early 2011 launch of a CDMA-compatible iPhone.

Citing a “solid Apple source,” the publication claimed Monday that iPhone model 3,2 has reached the field test phase, while the next-generation “iPhone 5″ has advanced to the Engineering Verification Test stage of the development cycle.

“We have been told that iPhone model 3,2 — what everyone is assuming to be the Verizon (or at least CDMA-compatible) phone — just hit the “AP” testing stage. This is the very last stage before retail release; final hardware, almost final software,” the report noted.

Since Apple uses the first number in these device identifiers to refer to major revisions and the second number to refer to minor revisions, iPhone model 3,2 should be an updated iPhone 4 rather than a next-generation model. The report speculates that the 3,2 revision could also include a fix for the widely publicized iPhone 4 antenna issue.

BGR’s source asserts that iPhone version 3,2 will contain a SIM card slot, which is generally used only by GSM devices. However, earlier this month, rumors surrounding a Verizon CDMA iPhone implied that Qualcomm could provide Apple with a dual-mode baseband chip that would support both GSM and CDMA networks. In the U.S., AT&T and T-Mobile run GSM networks, while Verizon and Sprint use the CDMA standard. China Telecom is also reportedly in talks with Apple over a CDMA iPhone.

The story adds to articles published by both the Wall Street Journal and the New York Times from early October that a Verizon iPhone is in the works for next year, the much-talked-about rumors of Apple going multi-carrier in the U.S. have gained momentum.

Stay tuned for additional details as they become available.

Jobs crushes 7″ iPad rumor at Q4 financial announcement

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Date: Tuesday, October 19th, 2010, 06:35
Category: iPad, News

It’s the in-between things during Apple’s financial announcements that make things interesting.

During yesterday’s Q4 earnings conference, Apple CEO Steve Jobs on Monday took a moment to extinguish rumors that the company is working on a smaller iPad based around a 7″ screen according to AppleInsider.

“The reason we [won't] make a 7-inch tablet isn’t because we don’t want to hit that price point, it’s because we think the screen is too small to express the software,” Jobs said on Monday’s quarterly earnings conference call. “As a software driven company we think about the software strategies first.”

“We know developers aren’t going to deal well with these different sizes and they have to change their software every time the screen size changes,” he added. “When we make decisions on 7″ tablets it’s not about cost, it’s about the value of the product when you factor in the software.”

You see what I’m getting at?,” Jobs continued. “So we’re all about making the best products at aggressive prices and that’s what we do, and that’s what we will do with the iPad and iPod.”

Asked by an analyst how he would respond and whether Apple would lose share if the market suddenly moves to a lower price point with fewer features, Jobs said “You’re looking at it wrong, […] looking at it as a hardware manufacturer who doesn’t know much about software who assumes the software will take care of itself.”

“Hm, how can we make this cheaper? Well let’s put a smaller screen, slower processor, less memory, and you just assume the software will somehow come alive on this product but it won’t,” Jobs quipped. “Developers have taken advantage of faster processors and bigger screens to make better apps for customers.”

“It’s a hard one,” the Apple co-found said of such a strategy, “because it throws you in the chicken-and-egg question to change assumptions on developers.” Most developers won’t follow that lead, he suggest. Instead, they’re more likely to say, “Sorry, I’m not going to write a watered down version of my app just because you can sell this version of your phone for US$50 less.”

Rumors of a 7-inch iPad have come from numerous sources, several alleging that Apple is working on a smaller version of the iPad.

Those reports suggested that the current iPad is too heavy for users, and that a smaller form factor and lighter weight would be more ideal for reading.

Jobs’ comments on Monday come as a number of competitors are embracing the 7″ form factor with their own touchscreen tablets. Samsung’s Galaxy Tab is set to launch this year with all four major U.S. wireless carriers, while BlackBerry plans to release its own PlayBook in early 2011.

Earlier this month, it was suggested that Apple developed a 7″ iPad alongside the current model, but eventually opted just to release the current 9.7″ model. Jobs’ comments Monday would support that rumor, as the CEO noted that his company has done extensive research on touchscreen interfaces and what works best for users.

“We really understand this stuff,” Jobs said.

As always, we’d love to hear what you have to say about this.

Apple posts over $20 billion in sales, $4.31 billion profit for fourth quarter

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Date: Tuesday, October 19th, 2010, 06:56
Category: Finance, News

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Apple on Monday reported a “great fiscal quarter,” citing a quarterly profit of US$4.31 billion, compared to US$2.53 billion for the same period last year. Over the quarter, Apple recored US$20.34 billion in revenue, an increase of nearly 67 percent from the year-ago quarter’s sales figure of US$12.21 billion.

Apple’s earnings of US$4.64 per diluted share handily beat estimates by Wall Street analysts who were expecting the company to report earnings of US$4.06 a share on $18.86 billion in revenue for September quarter.

“We still have a few surprises left for the remainder of the calendar year,” said CEO Steve Jobs in a statement accompanying the earnings. Apple has scheduled a press event for this Wednesday where the company is expected to focus on the Mac.

Per Macworld, Apple executive Peter Oppenheimer credited record iPhone sales, enthusiasm for the iPad, and a new quarterly sales record for Mac sales as the drivers behind Apple’s strong quarterly performance. In particular, Apple sold 4.19 million iPads during the first full quarter of sales for the tablet; all told, the company sold 7.5 million iPads during its 2010 fiscal year.

For the fiscal fourth quarter, Apple recorded US$2.8 billion in sales of iPads and related accessories, with the iPad accounting for US$2.7 billion of that figure. That translates to an average selling price of around US$645 for the tablet, Oppenheimer said.

iPad sales may disappoint some analysts, who were expecting Apple to sell close to 5 million tablets. One of the issues may be with inventory—Apple says it has three-to-four weeks worth of channel inventory, which is below its target range of four-to-six weeks. The company plans to expand its iPad distribution efforts, adding retailers like Verizon, Walmart, Target, and AT&T into the mix as well as launching in additional countries.

As for the iPhone, Apple managed to sell 14.1 million units during the quarter. This marks a 91% increase over the 7.4 million phones sold during the year-ago quarter and a new quarterly record for smartphone sales for the company.

For the 2010 fiscal year, Apple sold 40 million phones, a 93 percent jump over 2009. During September, the company says it passed the 125 million mark for cumulative iOS sales of its iPhone, iPad, and iPod touch offerings.

Apple also saw a record quarter for its Mac business. The company sold 3.89 million computers, up 27% from its year-ago sales. Fourth-quarter Mac sales topped the previous high-water mark of 3.47 million mark set during the June quarter. Year-over-year sales growth was more than double the growth rate projected for the overall PC market by research firm IDC, according to Oppenheimer.

Notebooks continue to drive Mac sales, with portable products, accounting for 71% of the Macs sold during the September quarter. However, sales of desktops rose nearly 28% to a little more than 1 million units, on the strength of the company’s iMac and Mac Pro updates over the summer.

Despite the largely positive news, the iPod segment continues to shrink, with Apple selling 9.05 million music players during the quarter (an 11% drop from last year’s figures). Apple updated its iPod line in September, though the company usually sees the fruits of those efforts during the holiday quarter.

While iPod sales growth stalled throughout 2010, Apple opted to focus on the positive Monday. It noted that the iPod’s share of the MP3 player market in the U.S. continues to top 70% according to research firm NPD’s figures. And Apple says its music player gained market share internationally from the year-ago quarter. The company also reported that its iTune Store brought in more than US$1 billion in revenue for the September quarter.

Apple CEO Steve Jobs took a minute during the conference call to comment on the company’s “hobby” product, the Apple TV, announcing that it had moved more than 250,000 units since the device went on sale. That’s the first time the company has ever revealed sales information for the device, which has gone through a number of iterations since its original introduction in 2007. Jobs confirmed that Apple had moved to an all-streaming model for content for the device, which will allow streaming of media from iOS devices in November when Apple ships iOS 4.2.

Apple’s retail segment had what Oppenheimer called a “record-breaking quarter,” with revenue rising 75% to US$3.57 billion. Apple sold 874,000 Macs through its retail arm, an increase of 30% from the year-ago quarter. The company sales that half of the Macs sold through its brick-and-mortar outlets continue to be to customers who are new to the platform.

Apple ended the fourth quarter with 317 stores, 84 of which were outside the U.S. The company opened 24 new stores during the quarter, with 16 of those opening outside of U.S. borders. In fact, with new store openings in Spain, Apple now has retail outlets in 11 countries.

The company also stated that it plans to open 40 to 50 stores during the coming fiscal year, with half of those slated for outside the U.S. The company also plans to start renovating several of its U.S. stores during 2011.

Monday’s earnings report closes the book on Apple’s 2010 fiscal year, which saw the company record US$65.2 billion in sales, a 52% increase from the US$42.9 billion in revenue recorded in 2009. Apple turned a US$14 billion profit in 2010, an increase of 72% from the previous year.

“The September quarter was the culmination of a monumental year for Apple,” Oppenheimer said.