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.

Apple releases Security Update 2010-003 for Mac OS X 10.5, 10.6 operating systems

Posted by:
Date: Thursday, April 15th, 2010, 04:40
Category: security, Software

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Following up on a slew of recent software updates, Apple released Security Update 2010-003 on Wednesday. The update, which varies in size between 6.2 and 208 megabytes depending on the version used and fixes assorted security holes described here.

The update, as usual, can be located, snagged and installed Mac OS X’s Software Update feature.

Security Update 2010-003 requires Mac OS X 10.5 or later to install and run.

If you’ve installed the update and noticed any changes, let us know.

Associated Press Developing Subscription Service for iPad

Posted by:
Date: Monday, March 1st, 2010, 04:52
Category: iPad, News

The Associated Press, one of the world’s largest news wire services, will be building an iPad app in a move that counters the primarily ad-only model for news on the Web.

According to the Financial Times, AP’s iPad plans were unveiled along with the creation of a new business unit called AP Gateway, which will be devoted to helping the wire service’s member newspapers keep abreast of new technologies ranging from e-readers to mobile phones.

The AP hopes to assist its member newspapers with rolling out electronic editions of their publications without each paper having to develop its own digital strategy in Web access and mobile apps, something that many papers lack the resources and expertise to do on their own.

The move to create paid subscription access to wire service news follows a business model pioneered by specialized newspapers such as the Financial Times and Wall Street Journal, which both provide premium access to news to their paying subscribers both on the web and via native iPhone apps.

Reuters and the New York Times are also both planning to roll out paid access to their Web properties over the next year.

Speaking at the Colorado Press Association’s annual meeting, AP’s chief executive Tom Curley said that, “For publishers, [2010] likely is the defining moment. We must seize this opportunity to reinvigorate our business models as well as our journalism.”

Curley said the AP was convinced by three years of anthropological research that its publishers must differentiate their content, and not add to “information overload.”

Apple Offers Extended Warranty Program for MacBook Hard Drives

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Date: Wednesday, February 17th, 2010, 04:15
Category: hard drive, MacBook, News

If the hard drive on your older MacBook Pro was starting to go south, Apple may have something for you.

Per CNET, Apple is now offering the MacBook Repair Extension Program for hard-drive issues on machines purchased roughly between May 2006 and December 2007. Customers experiencing hard-drive issues should take their machines to an Apple Store or Apple Authorized Reseller to have it diagnosed.

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The primary sign of hard drive troubles on your MacBook is the flashing question mark when starting up. Should your machine fall into the eligible model range, you will be given a replacement drive, free of charge.

Apple has published a knowledge base article relating to the program and listed the following models as affected units:

- 13-inch black and white MacBook models with the following processor speeds and hard-drive capacities:
- Processor speed – 1.83GHz, 2GHz, or 2.16GHz
- Hard drive capacity – 60GB, 80GB, 100GB, 120GB, or 160GB

If you’ve already paid for an out-of-warranty repair, Apple also offered the following:

“Some customers may have paid for out-of-warranty repairs that qualify under this program. Apple will contact affected customers (where contact information is available) with details on the reimbursement process. If you believe that you paid for a repair covered by this program and you have not been contacted, you may contact Apple Technical Support.

This worldwide Apple program does not extend the standard warranty coverage of the MacBook but covers affected MacBook models for 3 years from their original date of purchase or until August 15th, 2010, whichever provides longer coverage. Apple will continue to evaluate the repair data and will provide further repair extensions if needed.”

As always, hurl in your two cents and let’s see how Apple handles this.

MWSF: Day One Gallery

Posted by:
Date: Friday, February 12th, 2010, 04:41
Category: Macworld Expo, Pictures

Macworld Expo is underway and with we’ve sent ace photo hound Michael Johnston of iPhone Alley to go grab shots for us.

Take a gander, let us know what you think and remember: you can probably outrun the giant anthropomorphic Microsoft Office icons:

IMG_5759Yep, we’re in the right place.

IMG_5776Even without Apple there, you’ve got a crowd. Not too shabby.

IMG_5784Behold, more crowds. And escalators.

IMG_5788Attendees walk to the next exhibit or section in what appears to be a full capacity Expo.

IMG_5791The latest Microsoft marketing campaign: a combination of annoyance and primal terror.

IMG_5794To be fair, the giant Microsoft Office icons CAN be killed with silver bullets and holy water.

IMG_5804Attendees sit in on a panel featuring John Braun and Dave Hamilton of the Mac Observer.

IMG_5802Attendees listen to a panel on the Main Stage before hopping off to the next vendor or exhibit.

MWSF: Microsoft Announces Office for Mac 2011

Posted by:
Date: Thursday, February 11th, 2010, 09:10
Category: Macworld Expo, News

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With Macworld Expo underway, representatives from Microsoft announced Microsoft Office for Mac 2011, which should arrive in time for the 2010 holiday season.

Per Macworld, the new version focuses on better compatibility across platforms, improved collaboration tools, and a more refined user interface. Also, as Microsoft announced last August, the suite will include Outlook for Mac, which replaces Entourage as Office’s e-mail client. The new version of Office will also offer renewed support for Visual Basic, which was dropped in the 2008 version of the productivity suite.

“Nowadays, compatibility means more than just file formats,” said Microsoft’s Kurt Schmucker. “It’s also workflow, collaboration, and user interface.”

To that end, the new version of Office will incorporate document-collaboration features that take advantage of Microsoft’s online storage features. With Office for Mac 2011, Mac users will be able to share files and collaborate on documents with other Mac and Windows users via Microsoft’s SharePoint, SkyDrive, and Office Web Apps.

Those online tools will allow users to collaborate on documents with other Windows and Mac Office users in real time, similar to the features found in Google Docs. For example, users could create a document in Word on your laptop, save it to SkyDrive, then share it with others. A pop-up in Word will display who’s working on the document; click on that list, and you’ll be able to send them a message (as long as everyone is using Outlook or Microsoft’s Messenger IM application). The paragraphs your collaborators are working on will be locked out until they’re done. Users will also be able to edit those same documents from any computer, using Office’s Web apps. Mac users will have the same experience in the their versions of Safari and Firefox as Windows users get with their browsers, Schmucker said.

Microsoft also says it’s learned from user feedback about Office 2008 and has tweaked the user interface accordingly in Office 2011.

A new Ribbon at the top of each document window replaces Office 2008’s controversial Elements Gallery, which took some fire from Mac users for its size and inflexibility. This new Ribbon is designed to give users quick access to each program’s most commonly used tools. Unlike the Elements Gallery, the ribbon is customizable and, if you want more screen space, completely collapsible.

The new suite will also feel more Mac-like than Office 2008. For example, the Ribbon is built entirely using Apple’s Cocoa development framework, and takes takes advantage of Apple’s Core Animation system. (As a result, Ribbon tabs will slide smoothly when you rearrange them.) Click on Ribbon tools and they’ll expand smoothly into popovers that don’t obscure the document you’re working on.

Summarizing the interface changes, Microsoft’s Han-Yi Shaw likened Office 2008 to a teenager—“a little quirky”—but said the new edition is Office matured. “This is the version that everyone wanted,” he said.

Shaw added that the Mac team at Microsoft worked hard to adopt Apple technologies while also making sure their product was recognizably Microsoft Office. “We’re at a cross-section of Mac and PC, and because we’re die-hard Mac users, we look at the [Office] technology and try to translate it,” he said. “Following the Apple design philosophy really takes you in the right direction.”

The new Outlook will support PST imports (allowing you to move an Outlook installation, including all your old e-mails, from a Windows PC to a Mac) and will also support Microsoft’s Information Rights Management (IRM), which allows senders to specify what recipients can do with messages (print, forward, and so on). Previously-Windows only, IRM is required in some corporate settings. IRM support in Office 2001 is aimed at Mac users in cross-platform environments, Schmucker said: “It’s been a blocker for some companies because the Mac support was not there.”

The company has also re-engineered the Outlook message database system to be a series of small files, so it’s more easily backed up with Time Machine and searched in Spotlight. “Outlook’s new database is more reliable, faster, and fully supports Time Machine and Spotlight,” Schmucker said.

Finally, power users will be be able to make use of the Visual Basic macro language. Visual Basic was dropped from Office 2008 in part because it was to technically difficult to port it to the Mac’s then-new Intel CPUs. Microsoft says it began work on that port as far back as 2008, before the last Mac Office shipped. That work is now complete and the Mac suite will be using the most up-to-date version of Visual Basic.

Stay tuned for additional details as they become available.

Apple Posts $3.38 Billion Profit, $15.68 Billion in Sales for Q1 Results

Posted by:
Date: Tuesday, January 26th, 2010, 07:56
Category: Finance, News

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Even if the global economy’s in iffy shape, you can’t tell it by Apple.

Per Macworld, the company posted its best-ever performance for the first fiscal quarter, citing tallied sales of US$15.68 billion and a net quarterly profit of US$3.38 billion. That compares to year-ago figures of $11.88 billion in sales and US$2.26 billion in net quarterly profit.

“We’re extremely pleased with our record-breaking performance, including our 32% in growth in revenue and 50% growth in net income,” Apple chief financial officer Peter Oppenheimer told analysts during a Monday afternoon conference call to discuss Apple’s quarter numbers.

The company’s quarterly performance translated to earnings of US$3.67 per share, up 47% from the US$2.50 per share that it earned in the year-ago quarter.

Apple’s reports, which may seem a bit off in comparison to last January’s returns, reflect the retrospectively adopted Financial Accounting Standards Board’s amended accounting standards during the 2010 first quarter. Adopting those standards significantly alters how Apple accounts for certain items such as the iPhone and Apple TV sales. The revised standards allow Apple to recognize revenue and product at the time of sale and the company has restated its results for the 2007, 2008, and 2009 fiscal years to reflect this change.

“We believe [the new accounting rules] will better enable us to recognize the underlying economics and performance of our business,” Oppenheimer said.

For the 2010 fiscal first quarter, Apple sold 3.36 million Macs, up 33% from the 2.5 million units the company sold in Q1 of 2009.

The Mac sales figure sets a new record, topping the 3.05 million Macs Apple sold during the fiscal fourth quarter of 2009.

The fall revamp of the iMac line helped boost desktop sales for the quarter. In October, Apple replaced its 20″ and 24″ iMacs with new 21.5″ and 27″ configurations of the all-in-one desktop. Apple sold 1.23 million desktops in its first quarter of 2010, an increase of nearly 70% from the 728,000 desktops it sold a year ago.

Notebook sales came in at just under 2.13 million units sold during the first quarter, a number which accounts for 63% of all the Macs sold during the quarter. Portable sales rose 18% from the 1.796 million laptops Apple sold in the year-ago quarter.

Overall education sales for Mac products grew 16% from last year, reflecting Apple’s best growth rate in that segment since before the start of the current recession, according to chief operating officer Tim Cook. The K-12 and higher-education channels both reported record sales for the December quarter.

“Our whole education business is based on really understanding teaching, learning, and student achievement, and we think we’re the only tech company that really gets that,” Cook said.

iPhone sales reached record heights in the quarter with the company selling 8.7 million iPhones in three months, breaking the record of 7.4 million set in the previous quarter. iPhone sales were twice what they were during the previous year’s first quarter with the sales value of those 8.7 million iPhones exceeding US$5.4 billion. The average selling price of iPhone models was down 5% versus the prior year, likely owing to the existence of the cut-rate US$99 iPhone 3G model.

In response to a question from an analyst, Cook offered praise for often-criticized U.S. wireless partner AT&T. “AT&T is a great partner,” he said. “In the vast majority of locations, we think iPhone customers are having a great experience… AT&T has acknowledged that they’re having a few issues in some cities, and they have plans to address these. We have personally reviewed these plans, and we have high confidence [in them].”

Regarding Apple’s acquisition of Quattro Wireless, a mobile advertising company, Cook said that Apple “look[s] forward to providing developers with a great opportunity for advertising,” but that mobile advertising is currently “in its infancy.”

Not every product segment saw growth during the quarter and iPod sales fell 8% from Q1 of 2009, as Apple sold 21 million music players during the quarter. However, Oppenheimer characterized that decline as expected. Indeed, overall iPod sales growth has been flat for some time—sales have declined for three consecutive quarters now.

Still, Apple executives didn’t sound particularly bothered on Monday by the iPod’s quarterly performance. The music player continues to gain market share internationally, and its share of the U.S. market remains at more than 70%, according to Oppenheimer.

Despite the lower iPod numbers, Oppenheimer said Apple sold 55% more iPod touches this year than it did in the first quarter of 2009. The average selling price of the iPod increased by 9% during the quarter, driven by sales of the touch.

Oppenheimer told analysts on Monday that the iTunes Store had enjoyed a “record-breaking quarter,” though the company provided no revenue figures for its online retail arm for music, movies, TV programs, and mobile apps.
Retail and other figures

Apple finished the first quarter with 283 retail stores, after opening 10 new outlets during the quarter. Those openings included high-profile stores near the Louvre in Paris and New York’s Upper West Side. Apple also remodeled 32 stores during the quarter, for a total of 100 remodels during the 2009 calendar year.

Retail revenue rose 17% to US$1.97 billion for the quarter. Average revenue per store was US$7.1 million, up from US$7 million in the year-ago quarter. The brick-and-mortar stores sold a record 680,000 Macs, with half of those sold to customers who were new to the Mac.

Apple is expected to open between 40 and 50 stores during the 2010 fiscal year, Oppenheimer said, with half of those outlets located outside the U.S.

Even after a quarter of cash outlays that included the purchase of online music streaming company Lala, the company reported that it now holds cash and short-term investments totaling US$39.8 billion, up $5.8 billion from the previous quarter.

Looking ahead to the March quarter, Oppenheimer told analysts to expect sales between US$11 billion and US$11.4 billion. That compares to restated sales of US$9.1 billion for the fiscal second quarter of 2009. Apple expects earnings between US$2.06 and US$2.18 per share for the upcoming quarter; that compares to US$1.79 per quarter a year ago, after adjusting for the new accounting rules.

“The new products we are planning to release this year are very strong, starting this week with a major new product that we’re really excited about,” CEO Steve Jobs said in a statement accompanying Monday’s earnings release.

Rumor: Next-Gen iPhone to Go Into Production Earlier, Feature Magic Mouse-Like Casing

Posted by:
Date: Friday, January 15th, 2010, 07:26
Category: News

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If it wasn’t for rumors, things would be factually accurate.

And sort of boring.

Per Bloomberg News, Apple will introduce a new iPhone in 2010 that will employ a touch-sensitive plastic back casing similar to the one used on the company’s new Magic Mouse, one analyst has said.

In a recent interview, Robert Chen with Goldman Sachs Group Inc. said the new iPhone will go into production as early as April, and will be available to customers in June or July. Chen said the plastic back panel of the phone could have a touch-sensitive solid shell, much like on the Magic Mouse.

The new hardware could also include an updated version of the iPhone operating system, Chen said.

“Apple’s going to put a lot of innovation, not just on the hardware, but also on the software of the new iPhone,” he told Bloomberg.

Chen’s predictions are more in line with conventional thinking than a report from earlier this week, in which executives at a South Korean wireless provider claimed a fourth-generation iPhone could see a limited debut in April with a dual-core processor and potentially a removable battery.

Contrary to that rumor, Apple typically announces new iPhone hardware at its annual Worldwide Developer’s Conference. It is believed Apple could hold that event starting June 28, coinciding with Chen’s claims of a June or July debut for the new iPhone.

The Magic Mouse, which was introduced in October, lacks any physical buttons on its solid acrylic surface. It allows multi-touch controls that are closer to that of a MacBook trackpad, allowing secondary clicks and finger-based gestures.

Stay tuned for additional details as they become available and we’re looking forward to seeing what comes out of the scheduled Yerba Buena media event on January 27th.

USB 3.0 Demoed at CES, Initial Peripherals en Route

Posted by:
Date: Monday, January 11th, 2010, 06:50
Category: News

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Over at CES, Jeff Ravencroft, the president of the USB Implementers Forum discussed the arrival of USB 3.0 and gave a brief demonstration of transfer speeds on a Hewlett-Packard.

The demo proved one thing: USB 3.0 is much faster than the current USB 2.0 protocol, a nearby display showing the one minute four second time necessary to move a 2.1 GB file from a notebook to an external hard drive under USB 3.0 as opposed to two minutes and seven seconds under USB 2.0.

Per CNET, the USB 3.0 standard is more power efficient than USB 2.0 “This uses one-third of the power it would take on USB 2.0,” said Ravencraft, in an interview at CES. “And it’s backward compatible,” he said, meaning it can also handle peripherals that use older USB standards.

On the peripherals friend, hard drive maker Western Digital has announced a new WD My Book based on the USB 3.0 specification with an adapter card, which will make an existing desktop PC USB 3.0-compatible.

Also, cards that go into a laptop’s ExpressCard slot are available, Ravencraft said. This allows an existing laptop to be upgraded to 3.0.

No official word has been made available as to when USB 3.0 ports and peripherals will arrive on Apple’s products.

Happy New Year From the PowerPage!!!

Posted by:
Date: Friday, January 1st, 2010, 07:23
Category: Announcement

Welcome to 2010 and the staff of O’Grady’s PowerPage will be taking the day off to thoroughly rock out to Heart’s “What About Love?” (which will be played on a continuous loop) as well as ponder the upcoming Apple tablet and iPhone OS 4.0 in the new year.

Come back Monday, January 4th, and we’ll continue to do our best to keep you up to date with the best Macintosh mobile news available.


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