Apple releases Q3 2013 numbers, cites $35.3 billion in revenue, $6.9 billion profit

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Date: Wednesday, July 24th, 2013, 06:17
Category: Finance, News, retail

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There wasn’t massive growth, but the numbers were still good.

Per Macworld, Apple reported sales of US$35.3 billion, with net profit at US$6.9 billion for its third fiscal quarter. That translated to earnings of US$7.47 per diluted share. Apple’s revenue marked a record for the June quarter, ticking up 1 percent from the $35 billion Apple posted in last year’s third quarter. Still, profits fell 22 percent year-over-year, down from US$8.88 billion in 2012. Apple also reported a drop in profit during its fiscal second quarter of 2013.

With a tiny increase in revenue but a drop in profit, you’d rightly conclude that Apple’s gross margin dropped: For the quarter, it was 36.9 percent, versus 42.8 percent on the year-ago quarter. That’s because Apple’s most popular products now have lower margins than the top-sellers a year ago.

The company also says it has issued US$18.8 billion in cash to shareholders through dividends and buybacks.

While Apple generally keeps a tight lid on future product announcement, company officials did reiterate a point made during its second-quarter earnings announcement in April—that the company plans to roll out new products starting this fall and into the next year. “We are laser-focused and working hard on some amazing new products,” CEO Tim Cook said in an statement accompanying Apple’s earnings announcement.”

Apple says it sold 32.2 million iPhones—a record for the June quarter. That’s up from 26 million iPhones in the year-ago period. For the U.S., iPhone sales rose 51 percent year-over-year, Apple says.

The picture was less rosy for iPad sales, but Apple has a perfectly reasonable explanation for the 14 percent drop in tablet sales from last year’s third quarter. A year ago, Apple introduced the third-generation iPad and enjoyed a full quarter’s worth of sales to the tune of 17 million units. This quarter, sales fell to 14.6 million iPads.

Still, Apple has plenty of reason to remain bullish on the iPad. Company chief financial officer Peter Oppenheimer said that the iPad ranked tops in a 2013 U.S. tablet satisfaction survey by JD Power and Associates. And during the quarter, the company inked a deal with the Los Angeles Unified School District, the second largest district in the U.S., to roll out iPads to 640,000 students.

In fact, the iPad got the bulk of the credit for a strong quarter of sales to U.S. schools. According to Oppenheimer, the last three months generated the highest quarterly revenue ever for Apple’s U.S. education institution business.

Mac sales also fell in the quarter, down 7 percent from last year to 3.8 million units. Still, Oppenheimer pointed out that the 3.8 million Macs sold beat Apple’s own expectations. And Apple’s sales still were ahead of the total PC market, which saw sales contract by 11 percent according to estimates from research firm IDC. By Apple’s math, the Mac gained market share during the quarter.

The Mac was one of the few product lines to see any changes during the quarter, with Apple updating its MacBook Air lineup at the beginning of June by adding new Intel processors. Company executives had little to say about any impact those new laptops had on overall Mac sales, but Oppenheimer did call it the most successful MacBook Air launch to date, adding that customer response was great.

But during the call, executives implied that there were better things to come. Oppenheimer noted that June’s Worldwide Developers Conference included previews of both the Mac Pro and the next version of OS X, code-named Mavericks.

The iTunes Stores—which includes the App Store, Mac App Store, iBookstore, and the music, movies, and TV sections of iTunes—generated $4.3 billion in billings, Oppenheimer said, culminating in the best week and best month ever for App Store. That translated to quarterly revenue of US$2.4 billion, up 29 percent year over year. Total quarterly revenue from iTunes, software, and services generated US$4 billion in revenue.

Oppenheimer said that Apple now has over 320 million iCloud accounts, and 240 million Game Center accounts.

As for brick-and-mortar retail efforts, the Apple Store saw revenue of US$4.1 billion for the quarter, virtually unchanged from the year-ago quarter. Oppenheimer reported that Apple saw 16,000 visitors per store each week.

For the quarter, Apple had an average of 405 stores, with average revenue per store at US$10.1 million, down US$1 million from the year-ago quarter. Apple opened six stores across five countries during the quarter, giving it 408 stores around the globe; 156 of those outlets are outside the U.S.

The company plans to open nine new stores during the September quarter, giving it 27 new openings during the 2013 fiscal year. It’s not just about new stores, however: Apple says that it relocated four of its stores to more appealing spots; it will complete 23 such relocations before the end 2013 fiscal year in September.

Where stockholders are concerned, the company’s Board of Directors has announced another cash dividend, this one at US$3.05 per share of common stock, payable on August 15 to any shareholder as of August 12.

For the next quarter, Apple is predicting revenue between US$34 billion and US$37 billion, with gross margins between 36 and 37 percent. That sales figure would put Apple’s performance in line with the US$36 billion in revenue it reported in the fourth quarter of 2012. For the coming quarter, Apple also predicts operating expenses will be between US$3.9 billion and US$3.95 billion, with a tax rate of 26.5 percent.

Stay tuned for additional details as they become available.

Rumor: Apple testing larger-screen versions of upcoming iPhone, iPad devices

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Date: Monday, July 22nd, 2013, 06:09
Category: Hardware, iPad, iPhone, Rumor

Maybe there’s money to be made in the larger display market.

Per the Wall Street Journal and 9to5Mac, Apple and its suppliers are reportedly testing versions of the iPad and iPhone with larger displays.

Apple and its Asian component makers are testing larger screens for iPhones and tablets, officials at the company’s suppliers say.

Due to mounting competition from hardware competitors like Samsung, a larger-screened iPhone has long been expected and rumored. However, this is one of the first specific claims for a larger sized iPad. In March of this year, an unverified claim emerged for a 12.9-inch iPad model being in the works with a rather unlikely name. The report pointed to a display “measuring slightly less than 13 inches diagonally.”

A June report claimed that Apple and its suppliers are testing versions of the iPhone with both 4.7-inch and 5.7-inch screens. With Apple likely releasing a new iPhone with the same design as the iPhone 5 later this year, it seems likely that Apple’s 2014 iPhone will include significant design changes. The WSJ report does not specify screen sizes for the future iPhones.

The 2013 iPhone update, likely known as the “iPhone 5S”, will include an improved camera system, better chip, and potentially a slow-motion camera mode and fingerprint sensor.

As for today’s larger iPad claims, as Apple moves forward in its post-PC initiative, and as Mac sales dwindle, larger iPads that could replace more Mac features seem plausible.

In 2012, Apple slightly enlarged the iPhone display size by increasing the screen to 4-inches diagonally. Apple also shrunk the iPad by debuting a 7.9-inch model called the iPad mini.

Stay tuned for additional details as they become available.

Apple purchases HopStop, could focus on public transit and navigation updates for upcoming versions of Maps

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Date: Monday, July 22nd, 2013, 06:47
Category: News, Software

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Apple has snagged HopStop.

Per AppleInsider and AllThingsD, Apple on Friday purchased transit navigation service HopStop, which also has an iPhone app of the same name, in a possible bid to bolster its own in-house mapping solution.

Citing sources with knowledge of the deal, Bloomberg reports that Apple has just purchased HopStop, a localized public transit navigation service that could potentially be folded into the company’s Maps iOS app, and the upcoming OS X Mavericks version.

If the report is accurate, HopStop’s technology could be used by Apple to build out its Maps app, offering users directions for bus, train, subway and other transit options. The current version of Maps does not include such functionality, and instead points users searching for public transit routes toward third-party apps that can handle such tasks. Along with supporting transit information for over 300 major cities, HopStop also includes walking, car and bicycle routing.

News of the reported purchase comes just hours after Apple announced it had acquired Locationary, a tech startup that uses crowd-sourced data to offer accurate and up-to-date listings of local businesses.

Apple’s Maps has been the source of much debate since it was launched with iOS 6 in 2012. Incorrect data, graphical glitches and navigation issues plagued the app during its first few months in the wild. The company is still working hard to bring the mapping solution up to snuff, as evidenced by the acquisitions.

Stay tuned for additional details as they become available.

Top three Russian wireless providers drop iPhone over subsidies, other costs

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Date: Wednesday, July 17th, 2013, 07:29
Category: iPhone, News, retail

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If you’re headed to Russia and need to pick up an iPhone, your options may have become a bit more limited, comrade.

According to Fortune, three major Russian wireless providers have stopped carrying Apple’s iPhone, with the largest telecom, MTS, dropping the handset due to the high subsidy costs associated with being an Apple partner carrier.

As reported last week, Russia’s largest provider by subscribership, MTS, announced that it would be dropping the iPhone from its lineup, saying subsidies and marketing costs were to blame.

“Apple wants operators to pay them huge money, subsidizing iPhones and their promotion in Russia,” said MTS CEO Andrei Dubovskov. “Now it’s not beneficial for us. It’s good we stopped selling the iPhone as these sales would’ve brought us a negative margin.”

Fortune’s Philip Elmer-Dewitt speculates three factors played a part in the “big three’s” decision to ditch Apple’s handset. First, Russian carriers are limited by the federal agency Rospechat, which does not allow subsidies on the same level as seen in the U.S. For example, MTS is not able to offer an iPhone 5 for US$199.

Duties and taxes are also higher than normal for Europe, with an unlocked 16GB iPhone 5 selling for roughly US$925 on on the just-opened Russian Online Apple Store, or US$276 more than an identical U.S. variant. Apple says US$140 goes to Russian VAT, while the remaining US$129 is for foreign exchange rates, import duties, and channel mark-up.

Finally, Apple’s contract requirements, specifically those pertaining to marketing, are said to be extremely stringent. Because the contract terms are unknown, it is impossible to tell whether Russian carriers are subject to any special clauses.

The future of the iPhone in Russia is unclear, though estimates from IDC suggest that demand for the handset was already on the decline, dropping to 8.3 percent in the second quarter of 2013, down from 9 percent in 2012.

Stay tuned for additional details as they become available.

Apple working on 802.11ac bug fix for mid-2013 MacBook Air users, sends out limited invitation to test update

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Date: Monday, July 1st, 2013, 06:16
Category: MacBook Air, News, Software, wireless

If you’re having trouble with the Wi-Fi on your new mid-2013 MacBook Air, a fix may be on the way.

Per AppleInsider, in a likely response to reports of 802.11ac Wi-Fi issues with its latest MacBook Air refresh, Apple late Friday began sending out invitations to select users, offering inclusion in the AppleSeed Program to test an upcoming Wi-Fi centric software update for the notebook.

Sources who received the email said that Apple will provide selected customers with a pre-release version of the “MacBook Air WiFi Update 1.0″ to install and use on their new machines, asking that they give feedback on any bugs found during the testing process.

While not explicitly stated in the AppleSeed invite, it is thought that the update relates to recent Wi-Fi connectivity issues some customers have experienced with Apple’s implementation of the fairly new 802.11ac wireless standard.

The recently-released 11- and 13-inch MacBook Airs are the first Macs to implement the fast wireless protocol which, when combined with the new AirPort Extreme or AirPort Time Capsule, can reach theoretical speeds of up to 1300Mbps.

Although the technology has promise, a growing number of owners have complained of throughput limitations related to 11ac, with some reports speculating the wireless stack in OS X is at least partially to blame.

A thread on Apple’s Support Communities webpage appears to confirm the AppleSeed invitations, but offers little information on the software. Those who have already agreed to Apple’s terms said the company has yet to activate the invitation codes or send out the software.

In December 2012, Apple released a similar Wi-Fi compatibility update for Mac two months following the debut of the MacBook Pro with Retina display. At the time, owners of the then-new machine complained of problems recognizing 802.11n networks in the 5GHz band.

If you’ve received the notice or have experienced any Wi-Fi issues with a mid-2013 MacBook Air, please let us know in the comments.

Mid-2013 MacBook Air wake from sleep delay fix posted, simple Terminal command all that’s needed

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Date: Wednesday, June 26th, 2013, 09:33
Category: MacBook Air, News, Software

The new MacBook Air is nifty.

But there are still some bugs to sort out.

And in the case of the notebook being slow to wake up from sleep, PowerPage head honcho Jason O’Grady has noted a cool Terminal command that can resolve the slow wake issue, which first manifested itself when the MacBook Pro with Retina Display was released in June 2012.

The fix was reported in by user Erv Walter and is covered, step by step, in detail over on The Apple Core.

Click the link, take a gander and with any luck, your spiffy new MacBook Air will be able to wake from sleep just as quickly as you’d like it to.

Let us know if the fix works in the comments and if you have any other cool fixes of your own, please let us know.

Virgin Mobile to carry iPhone 5, will offer contract-free units for $550.

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Date: Friday, June 21st, 2013, 06:00
Category: iPhone, News

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Wireless carrier Virgin Mobile will be the next U.S. firm to receive Apple’s iPhone 5 next Friday, when the base-level 16-gigabyte model will become available for US$549.99 without a service contract.

According to AppleInsider, upon its June 28 launch, the iPhone 5 will be compatible with the carrier’s “Beyond Talk” plans, which can be purchased for as little as $30 per month. The 32-gigabyte iPhone 5 will be available for US$649.99, while the high-end 64-gigabyte capacity will be US$749.99.

A Virgin Mobile Beyond Talk plan includes 2.5 gigabytes per month of full-speed data at 3G and 4G speeds. Data is throttled after users reach the maximum monthly limit.

The plan is available for US$35 per month with 300 anytime minutes, but Virgin offers customers a US$5-per-month plan discount if they sign up for automatic monthly payments with a credit card, debit card, or PayPal account. That means Virgin Mobile subscribers can obtain a new plan with unlimited messaging and data for US$30 per month.

A jump to 1,200 anytime minutes is US$45 per month, while unlimited calling runs $55 per month. Both are also qualified for the US$5-per-month discount, bringing their prices down to US$40 and US$50, respectively.

Virgin Mobile began offering a 15 percent discount on iPhone 4 and iPhone 4S handsets a month ago. The company first started sales of Apple’s iPhone a year ago, in June of 2012.

Stay tuned for additional details as they become available.

Best Buy recalls select third party MacBook Pro batteries after reports of fires

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Date: Thursday, June 20th, 2013, 07:37
Category: battery, Hardware, MacBook Pro, News

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The MacBook Pro battery fire issue has reared its ugly head yet again…

Per Macworld, Best Buy has recalled about 5100 replacement batteries for Apple’s MacBook Pro laptops, after 13 reports that the battery caught fire, a U.S. consumer safety agency said.

The ATG lithium-ion batteries can catch fire while charging, the U.S. Consumer Product Safety Commission said in a statement Wednesday.

The recall covers both black and white ATG lithium-ion replacement batteries for MacBook Pro laptops. “Model number ‘MC-MBOOK13B’ is on the label of the black battery and model number ‘MC-BOOK13W’ is on the label of the white battery,” CPSC said. The ATG logo is on both batteries.

Best Buy has received 13 reports that the battery caught fire, including one of a serious burn to a consumer’s leg, according to CPSC.

Consumers have been advised to immediately stop using the recalled battery, remove it from the computer and contact Best Buy for a replacement Apple brand battery or a US$50 Best Buy gift card as a full refund. Best Buy is contacting its customers directly, it said.

Best Buy and Apple could not be immediately reached for comment. The batteries were manufactured in China and imported by a company in Las Vegas, called BTI.

The batteries were sold through Bestbuy.com and Partstore.com, a Best Buy brand, or shipped to customers through the Geek Squad Protection fulfillment at Best Buy from September 2008 through June 2012. A Best Buy spokesman said that it may be one of other companies also selling the batteries, according to reports.

Stay tuned for additional details as they become available.

Rogers Wireless, Telus, to offer iPad, iPad mini sales, Wind to offer nano-SIMs for iPhone 5 handset

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Date: Monday, June 17th, 2013, 06:05
Category: iPad, iPad mini, iPhone, News, retail

There shall be additional iPad offerings in the great white north.

Per Engadget, Canadian wireless carriers Rogers and Telus will start selling cellular LTE versions of Apple’s iPad and iPad mini in the near future, while Wind Mobile has already started sales of nano-SIM cards to bring unlocked models of the iPhone 5 to its network.

Both Rogers and Telus made the announcement on Friday in posts to their respective websites, saying that customers will be able to buy the iPad and iPad mini from carrier stores in the “coming weeks.”

The rival companies both have webpages dedicated to the iPad, with information and images mirroring Apple’s own site. Particular plan specifics were not released, but each carrier said it would continue offering no-contract data plans.

As for Wind Mobile, the wireless provider is now selling iPhone 5-compatible nano-SIM cards for US$25, allowing owners of unlocked devices to switch over to the company’s network. Wind is not an official Apple wireless partner, making the move similar to what T-Mobile did in the U.S. when the iPhone 5 first launched in 2012.

The smaller carrier’s network tops out at HSPA+ and does not support LTE, meaning iPhone 5 users will have to decide whether the carrier’s lower priced plans are worth the trade.

If you’re up around Canada and have any feedback to offer on this, please let us know in the comments.

United States Treasury Department clears way for iPhones to be sold in Iran

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Date: Monday, June 3rd, 2013, 07:34
Category: iPhone, News, retail

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At long last, the iPhone is finally coming to Iran.

Per the cool cats over at The Mac Observer, the United States Treasury Department has lifted some sanctions on selling communication devices mobile phones in Iran, which means Apple can finally begin selling its popular iPhone in the country. The decision will make it easier for people in Iran to legitimately buy iPhones, iPads, and other electronics, and is a move on the part of the U.S. to help push for political freedom in the country.

The Treasury Department said in a statement that Iranians deserve access to information and to communicate with each other without fear of government retribution.

The agency released the following statement:

“To help facilitate the free flow of information in Iran and with Iranians, The U.S. Department of the Treasury, in consultation with the U.S. Department of State, is issuing a General License today authorizing the exportation to Iran of certain services, software, and hardware incident to personal communications. This license allows U.S. persons to provide the Iranian people with safer, more sophisticated personal communications equipment to communicate with each other and with the outside world. This General License aims to empower the Iranian people as their government intensifies its efforts to stifle their access to information.”

While the policy change is good news for some people in Iran, it isn’t good news for everyone in the country. The U.S. isn’t allowing companies to export products to Iran’s government, or to people or organizations on its Specially Designated Nationals (SDN) list.

The policy change will hopefully help curb incidents where companies in the U.S. refuse to sell products to people they think are Iranian nationals. Apple came under fire in 2012 when the National Iranian American Council accused the company of racial profiling over retail store employees refusing to sell iPhones to customers that spoke Farsi or appeared to be of Iranian descent.

The incidents didn’t appeared to be widespread, but did underscore the confusion that comes with government-imposed sales sanctions.

The U.S. reversal on the Iranian sanctions comes a few weeks ahead of elections in the country. Apple may not be able to ramp up sales in Iran quickly enough to get iPhones and iPads into people’s hands, but the door is now open for the company to move forward into a new market.

Stay tuned for additional details as they become available.