Apple posts $11.6 billion profit for Q2 2012, iOS devices drive strong earnings

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Date: Wednesday, April 25th, 2012, 05:48
Category: Finance, News

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It’s pretty clear at this point: Apple’s not in danger of going out of business.

Per Macworld, on Tuesday, Apple reported a net profit of US$11.6 billion on revenue of US$39.2 billion for the quarter ended March 31, 2012. Those are respective increases of 94 percent and 59 percent from the 2011 second quarter. Apple’s profit translates to earnings of US$12.30 per share, up from US$6.40 a share last year; analysts were looking for earnings of US$10.06 a share for the quarter.

All told, Apple tallied record March quarter sales for its iPad, iPhone, and Mac lineups. The company also saw record results for its retail stores during what chief financial officer Peter Oppenheimer called “the most amazing March quarter that Apple has ever had.”

It was a big quarter for Apple’s iPhone business as the company launched the third-generation tablet on March 16 and cut the entry level price to US$399 for the iPad 2. While those moves came late in the quarter, Apple sold 11.8 million tablets during the quarter, up from 151 percent in the year-ago period.

In terms of revenue, Apple recorded US$6.6 billion from iPad sales, up from US$2.8 billion in the year-ago quarter.

Following its March 16 launch in the U.S. and nine other countries, the third-generation iPad is now available in 40 countries around the world.

Apple executives also noted on Tuesday that the iPad is extending the company’s reach into new markets. According to Oppenheimer, Apple sold two iPads for every Mac bought by one of its K-12 education customers in the U.S.—and that was during a record March quarter for Mac sales. Oppenheimer also touted the iPad’s presence in the enterprise, specifically citing the U.S. Air Force’s deployment of “thousands” of iPads as technical flight bags.

“The iPad continues to open new doors to customers with whom Apple had no previous relationship,” Oppenheimer said.

iPhone numbers were also strong for Apple during the quarter. The company sold 35.1 million phones between January and March, an 88 percent jump from year-ago iPhone sales and a record for the March quarter. That outpaced the growth of the overall smartphone market, in which sales increased 42 percent year over year.

Revenue from the iPhone grew 85 percent from last year’s second quarter to US$22.69 billion.

In particular, Apple did brisk iPhone business in the Far East. Sales more than doubled in the Asia Pacific and Japan markets, according to Oppenheimer. In China, iPhone sales increased five times from last year, helped by the iPhone 4S’s release in that country in January and the addition of China Telecom as an iPhone carrier in March.

Apple ended the quarter with the iPhone 4S available in 100 countries with 230 carriers offering the smartphone.

Oppenheimer says iOS device sales—which include the iPod touch—totaled 50 million during the March quarter. Apple’s cumulative iOS device sales have grow to 365 million units.

The App Store now carries more than 600,000 apps, with a third of those specifically built for Apple’s iPad.

Mac sales also set a March quarter record. The company sold 4 million Macs, an increase of 7 percent from the year-ago quarter. The entire PC industry grew 2 percent during the March quarter, making it six full years that Apple’s Mac business has outpaced the demand for PCs overall.

Notebooks are still the driver for Apple’s Mac business. The 2.8 million portable Macs sold during the quarter represent 70 percent of Mac sales. Besides illustrating the importance of the MacBook Pro and MacBook Air to Apple’s fortunes, that figure could also indicate that Apple’s desktop lineup is getting long in the tooth. The iMac last saw an overhaul nearly a year ago while the Mac mini has remained unchanged since July 2011. The Mac Pro is approaching the second anniversary of its last update.

The Asia Pacific market saw the biggest jump in Mac unit sales, with a 29 percent rise from last year. Other global markets saw single-digit growth in Mac sales.

Apple’s Mac sales may be outpacing the industry growth rate, thanks in some part to the company’s brick-and-mortar retail efforts. Apple says it sold 826,000 Macs at its retail outlets in the second quarter—about 20 percent of all the Macs it sold during the three-month period. About half the Macs sold at Apple Stores were to customers new to the platform.

Speaking of Apple retail, Apple ended the quarter with 363 stores, after opening two new ones in Amsterdam and Houston. Retail revenue of US$4.4 billion for the quarter was up 38 percent from last year. It was the retail segment’s second-largest quarter of sales, behind only first quarter of 2012, which includes the holiday shopping season.

iPod sales continued their decline. Apple sold 7.7 million music players, a drop of 15 percent from the second quarter of 2011. iPod sales actually came in ahead of Apple’s expectations for the quarter, according to Oppenheimer, with Apple choosing to focus on the fact that the higher-priced iPod touch represents more than half of the iPods sold during the quarter. Even with its declining sales, the iPod remains the market leader among MP3 players, according to Apple’s figures.

The company was much more eager to talk about the growth of its iTunes Store, which also saw record revenue of US$1.9 billion during the quarter. That’s an increase of 35 percent from last year’s tally, with music, video, and app sales driving the growth.

Apple executives revealed a few other interesting details about the quarter during their briefing with analysts. The company ended the quarter with US$110 billion in cash—a situation that figures to change in July when Apple starts paying out a US$2.65 per share dividend to shareholders. Oppenheimer said the company would provide more information about that dividend program in July.

iCloud now has 125 million subscribers, after Apple launched the cloud-based service and MobileMe replacement last October. That subscriber base is up from 85 million at the end of the first quarter. It was only in February that Cook was telling investors that iCloud had topped the 100 million subscriber mark.

Apple continues to do a staggering amount of business in China. Cook told analysts the company recorded US$7.9 billion in sales from that country during the second quarter, three times the amount of revenue it took in during the year-ago period. The US$12.4 billion in revenue Apple has seen in China during the first six months of its 2012 fiscal year nearly matches its revenue from that country for all of 2011. Cook credited pent-up demand for the iPhone 4S and strong iPad 2 demand for much of that growth, which is also creating a halo effect for Mac sales in China.

Oppenheimer told analysts to expect revenue of US$34 billion and earnings per share of US$8.68 for the June quarter. That compares to revenue of US$28.57 billion and earnings of US$7.79 per share for the fiscal third quarter of 2011.

Apple’s forecasted numbers would be a sequential drop from the revenue and earnings the company just reported for its second quarter. Oppenheimer said the company is expecting a sequential decline in iPhone sales, as Apple had ramped up inventory to meet pent-up demand. The company was also able to satisfy demand for the new iPad, thanks to a significant supply of tablets. The lower entry price for the iPad 2 and a stronger U.S. dollar are also factors in Apple’s forecast.

Stay tuned for additional details as they become available.

Flashback trojan emerges as “LuckyCat” variant, exploit found to spread malware via Microsoft Word documents

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Date: Monday, April 16th, 2012, 09:44
Category: News, security, Software

You’ve got to hand it to whoever developed it: they’re persistent.

Per SecureList, a new version of a backdoor trojan for Apple’s OS X operating system takes advantage of an exploit in Microsoft Word to spread.

The latest variant of the attack known as “LuckyCat” was discovered and detailed by Costin Raiu, Kasperskky lab expert. Raiu found that a dummy infected machine was taken over by a remote user who started analyzing the machine and even stole some documents from the Mac.

“We are pretty confident the operation of the bot was done manually — which means a real attacker, who manually checks the infected machines and extracts data from them,” Raiu wrote in a post.

The new Mac-specific trojan, named “Backdoor.OSX.SabPub.a,” uses a Java exploit to infect targeted machine. It spreads through Microsoft Word documents that exploit a vulnerability known as “CVE-2009-0563.”

The new trojan is noteworthy because it stayed undetected for more than a month and a half before it came alive and data was manually extracted from the machine. That’s different from MaControl, another bot used in attacks discovered in February 2012.

There are currently at least two variants of the “SabPub” trojan, which remains classified as an “active attack.” It is expected that new variants of the bot will be released in the coming weeks, as the latest was created in March.

Security on the Mac has been in the spotlight of late as a result of the “Flashback” trojan that infected more than 600,000 Macs worldwide. Apple addressed the issue with a series of software updates last week designed to remove the trojan from affected machines.

The Flashback botnet harvested personal information and Web browsing logs from infected machines. The trojan, which disguises itself as an Adobe Flash installer, was first discovered last September.

Stay tuned for additional details as they become available.

Rumor: Apple’s 2012 iMac to feature anti-reflective displays

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Date: Monday, April 2nd, 2012, 06:25
Category: Hardware, iMac, Rumor

Because rumors make technology interesting.

Per DigiTimes, a completely redesigned family of Apple’s iMacs due for release later this year will not only arrive noticeably slimmer than existing models but may also be the first of the company’s desktops to feature anti-reflective displays.

The Taiwanese rumor publication has claimed that G-Tech is ramping up its monthly production capacity of cover glass from 1.8 million units to 3 million units in an effort to supply 25% or more of the cover glass for Apple’s new iPad.

The report curiously cites sources in adding that “G-Tech is also expected to supply AR (anti-reflective) glass solutions for Apple’s all-in-one (AIO) PCs with the new products to also serve as a growth driver for G-Tech.”

That would be a first for an Apple desktop, as the Mac maker has thus far only offered anti-reflective solutions as built-to-order options on its MacBook family of notebooks.

Apple’s last major redesign of the iMac arrived in October 2009 in the form of new 21.5- and 27-inch aluminum-clad models with an edge-to-edge glass design. Since then, the company has been working on a pair strikingly slimmer and lighter models that will more closely resemble the footprint of today’s most popular LED televisions according to sources close to the story.

Rumored for an introduction sometime in the second half of the year, the new iMac will help define a trend that will also see several of the company’s other core products adopt slimmer, more streamlined footprints throughout the year, including new MacBook Pros that resemble MacBook Airs and a thinner iPhone.

Separately, Apple has also been working to cut the fat from peripherals that ship with its industry-leading all-in-one desktop, with recent company filings revealing techniques for a new, slim-form keyboard with keys that could have a total travel range of as little as 0.2 millimeters.

Stay tuned for additional details as they become available.

Rumor: Apple to drop Nvidia Kepler GPUs for low and mid-range 2012 MacBook Pro notebooks

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Date: Tuesday, March 13th, 2012, 09:53
Category: Hardware, MacBook Pro, Rumor

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Whatever you were expecting the graphics card to be on the next-generation MacBook Pro, Apple might have something else in mind.

Per SemiAccurate, Apple’s next-generation low- and mid-range MacBook Pro models will not feature dedicated graphics cards, and will instead rely on Intel’s integrated Ivy Bridge graphics due to production issues with Nvidia.

Apple has dropped Nvidia’s next-generation Kepler graphics cards from a “large number” of its upcoming notebooks according to the report filed on Tuesday. The change has allegedly prompted Apple to adopt Intel Ivy Bridge CPUs that have higher shader counts, in order to offset some of the lost graphics processing power.

The change was reportedly made because Nvidia “can’t supply enough small GPUs” to Apple and other PC makers. That’s left Apple in a position where its next-generation low- and mid-range MacBook models “are not going to have a GPU, only a GT2 Ivy Bridge,” the report said.

“Nvidia can’t supply, so Apple threw them out on their proverbial magical experience,” it continued. “This doesn’t mean Nvidia is completely out at Apple, the Intel GPUs are too awful to satisfy the higher end laptops, so there will need to be something in those. What that something is, we don’t definitively know yet, but the possibilities are vanishingly small.”

The rumored issues apparently stem from the fact that Nvidia has struggled with its 28-nanometer manufacturing process for its next-generation graphics processors, code-named “Kepler.” As a result, some mid-range MacBooks will feature dedicated Nvidia GPUs, and some won’t, Tuesday’s report claimed.

The same site first reported last November that Apple would switch back to Nvidia GPUs for its 2012 MacBook models. Higher end 13- and 15-inch MacBook Pros launched early last year relied solely on AMD graphics, while the entry-level 13-inch model features integrated Intel graphics.

Apple’s next-generation MacBook Pros are expected to feature a radically redesigned exterior, borrowing features from the company’s popular ultraportable MacBook Air. They are expected to be based on Intel’s forthcoming Ivy Bridge chip architecture.

Stay tuned for additional details as they become available.

Rumor: Apple reportedly shopping around for Apple HDTV prototype parts

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Date: Friday, March 9th, 2012, 07:10
Category: Hardware, Rumor

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When you go looking for components, people tend to notice.

Per AppleInsider, Piper Jaffray’s Gene Munster told investors on Tuesday that he had recently spoken to a “major TV component supplier” about Apple’s rumored plans to release a connected HDTV. Sources within the supplier reportedly told him that Apple had contacted “regarding various capabilities of their television display components.”

Munster said he viewed the news as “continued evidence that Apple is exploring production of a television.” Prior evidence that the analyst claims to have gathered surrounding an Apple television includes January 2011 meetings in Asia that suggested Apple was investing in manufacturing facilities for LCD displays as large as 50 inches and a September 2011 meeting with a “contact close to an Asian supplier” who claimed prototypes of an Apple set are in the works.

The firm believes Apple could be ready to release a television as early as late 2012, though Munster noted that “the timeline and stope of a revamped content solution is more uncertain.” Various reports have suggested that Apple has run up against resistance from movie and TV studios that are believed to be hesitant to license their content for an Apple television.

The analyst went on to speculate on several possibilities that Apple could make use of to address the content issue. For instance, Apple could simply enable the television to manage pre-existing live TV service from a unified interface, or it could make use of network programming and web-based video services such as Netflix and Hulu. Finally, Munster suggested that Apple could look to offer monthly subscriptions “on an a-la-carte basis” for live TV packages from content providers, but he noted that this is likely the “most challenging scenario” because of existing licensing arrangements.

A separate report claimed late last year that one of Apple’s most-desired features for an Apple television set is customized channel lineups. That report also noted that licensing for such a service would be “obviously much more complicated” than current offerings.

Piper Jaffray projects that Apple could sell 1.4 million of the 106 million internet-connected televisions estimated to be sold this year. The investment bank tentatively estimates that revenues from the device could reach US$2.5 billion in 2012, $4.0 billion in 2013 and US$6.0 billion in 2014.

Munster concluded his note by pointing out that Apple only enters mature markets in order to reinvent them. As such, he does not see Apple entering the TV market without a “revamped TV content solution.”

Stay tuned for additional details as they become available.

Intel to delay launch of Ivy Bridge processors by 8-10 weeks

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Date: Monday, February 27th, 2012, 08:19
Category: News, Processors

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You know, nobody really LIKES the person who tells them “better late than never”, even though that person tends to be right.

That being said, Intel’s next-generation Ivy Bridge processors, sized at 22 nanometers and expected to appear in Apple’s updated Mac lineup, will become available eight to 10 weeks later than originally planned, one company official has said.

Per the Financial Times, Sean Maloney, executive vice president and chairman of Intel China, revealed in an interview with the Financial Times that his company’s Ivy Bridge processors are now expected to go on sale in June. Those CPUs were originally planned to become available in April.

The apparent delay will allow Intel more time to manufacture the smaller, more complex chips. Maloney indicated that a later June launch was not prompted by a lack of demand.

The comments support a rumor from earlier this month that indicated Intel was forced to push back shipments of its Ivy Bridge processors to June. However, that same report claimed that a “small volume” of chips would be shipped in early April.

Earlier reports had suggested that Intel planned to debut a total of 25 new 22-nanometer Ivy Bridge processors at launch. They would include 17 desktop CPUs and 8 notebook processors.

Initial chips are expected to include models 3820QM, rumored to be priced at US$568, and 3720QM, US$378, both of which are potential candidates for an updated MacBook Pro.

Reports from late last year suggested Apple was planning to launch its updated MacBook Pro lineup in the second quarter of 2012>. It was said the Ivy Bridge-powered notebooks would feature a Retina Display-quality screen resolution of 2,880 by 1,800 pixels, exactly twice that of the 1,440-by-900 display currently found on the 15-inch MacBook Pro.

Retina Display MacBook Pros would be possible with Ivy Bridge because Intel’s next-generation chip architecture will bring support for 4K resolution. That gives Apple and other PC makers the option to build a display that is 4,096 pixels across, at a resolution more than twice that of 1080p.

The new Ivy Bridge notebook processors will feature Intel HD Graphics 4000 architecture. High-end MacBook Pros with dedicated graphics are rumored to be powered by Nvidia in Apple’s 2012 lineup.

Stay tuned for additional details as they become available.

Happy President’s Day from O’Grady’s PowerPage!!!

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Date: Monday, February 20th, 2012, 02:09
Category: Announcement

Ladies and gentlemen, President’s Day is upon us and the staff of O’Grady’s PowerPage will be taking the day off to spend with friends, family and assorted Apple mobile devices.

We advise you to do the same.

And if you can find a good sale in the process, more power to you.

Swing back tomorrow for more Apple mobile news and events and remember, it’s a good thing that Lincoln fought the vampires:



Apple announces Mac OS X 10.8 Mountain Lion, developers granted access to preview

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Date: Thursday, February 16th, 2012, 07:18
Category: News, Software

Remember how you sort-of-recently upgraded to Mac OS X 10.7 (Lion)?

You’re about to upgrade again this summer.

Per AppleInsider, Apple on Thursday announced Mac OS X 10.8, dubbed “Mountain Lion,” the next major release of its Mac operating system, set to launch on the Mac App Store this summer, with a preview now available for Mac developers.

A developer preview of the forthcoming operating system update was released to developers on Thursday, and Apple has boasted that Mountain Lion packs over 100 new features, including many brought from the iPad and iOS mobile operating system.

New features introduced with Mountain Lion include Messages, which replaces iChat, as well as Notes, Reminders and Game Center for the Mac. In addition, Mountain Lion will also feature Notification Center, Share Sheets, Twitter integration, and AirPlay Mirroring.

Mountain Lion will also be the first OS X release with iCloud for easy setup and integration with applications. The developer preview also includes Gatekeeper, which helps keep users safe from malicious software by giving control over what applications are installed on a Mac.

The preview of Mountain Lion is available to Mac Developer Program members starting Thursday. Mac users will be able to buy the upgrade from the Mac App Store in late summer 2012.

An in-depth preview of Mountain Lion was provided by the mighty Jim Dalrymple at The Loop who has had his hands on a copy of Mountain Lion for the past week. He said that the latest operating system is “packed with new features that existing Mac users and iOS users will enjoy.”

“If there was a theme in Mountain Lion, I’d have to say it’s familiarity,” he wrote. “Apple brought many new features into the new operating system from IOS, so millions of users will recognize the names of the apps and features.”

Mountain Lion also features tighter integration with iCloud, connecting it with Mail, Contacts, Calendars, Messages, FaceTime, Notes, Reminders, Game Center, the Mac App Store, Documents & Data, and Bookmarks. By simply entering an iCloud user ID and password, users will have many features automatically set up for them on their new Mac.

Mountain Lion also brings Notification Center from iOS to the Mac. It can be accessed by choosing a circle button on the top right of the screen. With a gesture of two fingers sliding from the right edge, the Notification Center can be pulled from the right side of the screen.

Reminders and Notes will help users create and track to-do lists across all of their devices. And Game Center lets users personalize their Mac gaming experience, find new games and challenge friends to play live multiplayer games, whether on a Mac, iPhone, iPad or iPod touch.

AirPlay Mirroring is also coming to the Mac, allowing users to wirelessly send a secure 720p video stream of what’s on their Mac to an HDTV using Apple TV.

New Twitter integration also allows users to sign in once and tweet directly from Safari, Quick Look, Photo Booth, Preview, and third-party applications. The new system-wide Share Sheets also makes it easy to share links, photos and videos directly from Apple and third-party applications.

Mountain Lion also features enhanced support for Chinese users, including the option to select Baidu search in Safari. It also sports “significant enhancements” to the Chinese input method, Apple said, along with connectivity for Contacts, Mail and Calendar through top e-mail service providers QQ, 126 and 163, and Share Sheets connectivity with Youku and Toudou.

For developers, there are hundreds of new APIs that allow access to core technologies and enhanced features in OS X. The new Game Kit APIs tap into the same services as Game Center on iOS, allowing developers to create cross-platform multiplayer games for iOS and Mac. There’s also a new graphics infrastructure underpinning OpenGL and OpenCL and implementing GLKit, first introduced in iOS 5, making it easier to create OpenGL apps.

Also found in Mountain Lion are enhanced multi-touch APIs that give developers double-tap zoom support and access to the system-wide lookup gesture. Additionally, kernel ASLR improves security through enhanced migration against buffer overflow attacks.

Pricing on Mountain Lion has not yet been announced, but the new operating system will only be available via the Mac App Store.

Stay tuned for additional details as they become available and if you’ve gotten your mitts on the developer preview, please let us know what you make of it in the comments.

Rumor: Apple to go with NVIDIA’s Kepler hardware for next-gen Mac Pro computers

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Date: Tuesday, February 14th, 2012, 12:25
Category: Hardware, Mac Pro, News

You may love your Apple notebook or iOS device, but at the end of the day, it’s the Mac Pro that gets the most number-crunching done.

Per MIC Gadget, Apple’s long-rumored Mac Pro update could signal a return to NVIDIA for graphics based on claims about production progress on Tuesday. The company had reportedly been soured based on is experience with drivers and hardware failures. Instead, it would use NVIDIA’s Kepler hardware, although which exact parts weren’t mentioned.

Apart from possibly better behavior, the graphics switch might also be to improve overall speed for creative pros. Adobe’s Creative Suite still primarily depends on NVIDIA’s CUDA general-purpose computing rather than OpenCL.

Kepler is expected to be about three times more efficient in performance than NVIDIA’s existing technology and may help it leapfrog AMD’s Radeon HD 7000 series.

The same tip had Apple just getting test samples of Ivy Bridge-based Xeon processors. The 22-nanometer chips have reportedly overcome overheating issues and are in high-enough production volumes. Apple would be using eight-core chips with 20MB cache, according to the tip, supporting its own early, inadvertent slip of 16-core Mac Pros that would use two processors.

The finished hardware, if accurate, might not ship until later into the summer, or about two years after the last update. Apple is known to have skipped a 2011 update after Intel’s Xeon E5 missed the market for all but a handful of specially-picked customers.

Stay tuned for additional details as they become available.

Rumor: Apple to hold iPad 3 event in early March

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Date: Thursday, February 9th, 2012, 07:45
Category: iPad, Rumor

If you’re hankering for the next iPad, you might like this.

Per AllThingsD, Apple will reportedly hold a media event the first week in March in San Francisco to unveil its third-generation iPad, which is expected to go on sale soon after it is unveiled.

Citing unnamed sources, the web site reported on Thursday that Apple’s so-called “iPad 3″ will debut at a special event to be held the first week in March. That means the next-generation tablet will be shown off in the next three to four weeks.

Author John Paczkowski said the device will be largely the same as rumors have suggested, with a high-resolution Retina Display in the range of 2,048-by-1,536 pixels along with a “much faster” processor and improved graphics processing.

Paczkowski also asked a source whether 2012 will be “the year of the iPad 3,” and they reportedly said, “what do you think?” Last year at the iPad 2 unveiling in March, Apple killed off rumors that a new iPad model would launch later in the year by declaring 2011 the “Year of iPad 2.”

Last year, the iPad 2 was unveiled at a media event at San Francisco’s Yerba Buena Center for the Arts on Wednesday, March 2. Thursday’s rumor suggests that the new iPad will debut at a similar point in the year. The month of March kicks off on a Thursday in three weeks.

The rumored date comes as a flurry of pictures claim to show components for Apple’s third-generation iPad, including one that purports to be a high-resolution Retina Display manufactured by Sharp for the anticipated tablet’s 9.7-inch touchscreen. Separately, a pair of reports claim to show both the outside and inside of the device’s back panel, suggesting it will include space internally for a larger battery.

Stay tuned for additional details as they become available.