Apple posts $6 billion profit in Q1 earnings call

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Date: Tuesday, January 18th, 2011, 14:56
Category: Finance, News

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Apple Inc. announced Tuesday that first quarter profits rose more than 77% to US$6 billion, or US$6.43 per diluted share, driven by record sales in three of its four major product categories, thereby beating analysts’ predicted earnings in the process.

Per AppleInsider, the company also posted record revenue of US$26.74 billion for the three-month period ended December 25, 2010, or more than US$2 billion above consensus estimates. The results compare to revenue of US$15.68 billion and net quarterly profit of US$3.38 billion, or US$3.67 per diluted share, in the year-ago quarter.

Apple sold 4.13 million Macs during the quarter, a 23% unit increase over the year-ago quarter. The company also sold 16.24 million iPhones in the quarter, representing 86% unit growth over the year-ago quarter. iPod sales during the quarter totaled 19.45 million, representing a seven percent unit decline from the year-ago quarter, while iPad sales came in at 7.33 million units.

“We had a phenomenal holiday quarter with record Mac, iPhone and iPad sales,” said Apple Chief Executive Steve Jobs. “We are firing on all cylinders and we’ve got some exciting things in the pipeline for this year including iPhone 4 on Verizon which customers can’t wait to get their hands on.”

Gross margin was 38.5% compared to 40.9% in the year-ago quarter. International sales accounted for 62% of the quarter’s revenue.

“We couldn’t be happier with the performance of our business, generating $9.8 billion in cash flow from operations during the December quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the second fiscal quarter of 2011, we expect revenue of about US$22 billion and we expect diluted earnings per share of about US$4.90.”

Stay tuned for additional details as they become available.

White iPhone 4 unit appears in Vodafone Germany’s SKU system

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Date: Tuesday, January 18th, 2011, 04:20
Category: iPhone, News

Wireless carrier Vodafone Germany was the source of minor attention on Monday with a spotting of white iPhone 4 listings in its inventory system. Per Engadget, entries for both the 16GB and 32GB versions of a “weiß” (“weiss,” or white) version showed up alongside the usual black (“schwarz”) versions. The source who leaked the images claimed these weren’t just placeholders and would have a launch “soon.”

The timing should be treated with caution as Apple has officially delayed the alternate color scheme until spring 2011. A spring debut even in March could have it on sale for three months or less before it was replaced with the iPhone 5. A white iPhone 4 isn’t thought likely to co-exist with the iPhone 5 as Apple has never had more than one previous-generation iPhone on sale at a time.

Unofficial reasons for the virtual cancellation of the white iPhone 4 have been broad. Most have pinned it on inconsistent coloring for the iPhone’s glass. In one circumstance, it was claimed that the white hue combined with the iPhone 4’s design interfered with the camera, but this hasn’t been proven so far.

Stay tuned for additional details as they become available and if you’ve been hankering for a white iPhone 4 since June, I’m not sure what to say.

iOS 4.3 beta code points towards Verizon iPad 2, iPhone variants and camera app for iPad

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Date: Thursday, January 13th, 2011, 06:54
Category: News, Software

The developers got the iOS 4.3 beta yesterday.

And they found some nifty stuff in it.

Per Engadget and 9 to 5 Mac, discoveries in the iOS 4.3 beta have revealed that Apple’s fifth-generation iPhone and second-generation iPad will come in native editions for Verizon along with camera functions. Mirroring the iPhone 3,1 and 3,2 entries that represent the iPhone 4 for GSM and CDMA respectively, device listings now exist for iPhone 4,1 and iPhone 4,2 as well. The appearance suggests Apple plans to synchronize its iPhone launches rather than stagger GSM and CDMA by a wide margin.

A third iPhone 4 variant (iPhone 3,3) has also appeared, which seems unusual and the device may be a version for GSM carriers on 1,700MHz 3G in North America, most notably including T-Mobile in the U.S. but also a slew of new Canadian carriers such as Wind Mobile, Videotron and Mobilicity. Without an iPhone 4,3 listed, though, it’s possible that either the third iPhone 4 variant will never ship or else that its iPhone 5 equivalent will ship sometime later.

The next iPad is also on show in the code and shows the newly promised Verizon model. Along with Wi-Fi (iPad 2,1) and HSPA 3G (iPad 2,2) variants, an iPad 2,3 version has tipped up and is almost certainly an EVDO version to give CDMA carriers one with internal 3G.

Separately, discoveries in the iOS 4.3 SDK have shown iPad-sized graphics for a camera app. The images show the camera iris effect as well as icons for both still photo and video modes, confirming movie recording. The full iris image tops out at 1024×768 and casts doubt on rumors of a higher resolution display unless Apple is deliberately keeping higher resolution graphics out of beta releases to avoid spoilers.

Verizon deal could open doors for other carriers to carry iPhone

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Date: Tuesday, January 11th, 2011, 12:07
Category: iPhone, News

If there’s a domino effect with the iPhone coming to Verizon, this could get interesting.

Per AppleInsider, Apple Chief Operating Officer Tim Cook revealed on Tuesday that his company’s agreement with Verizon for the CDMA iPhone is non-exclusive, meaning the new handset could also appear on Sprint’s CDMA network.

When asked if the new CDMA iPhone is exclusive to Verizon, Cook called the deal “multi-year” and “non-exclusive.” That means the other major CDMA carrier in the U.S., Sprint, could also offer Apple’s smartphone, if it were to reach a deal with Apple.

Of course, the non-exclusive deal also leaves open the possibility of a future GSM iPhone offering compatibility with the fourth-largest carrier in the U.S., T-Mobile.

T-Mobile’s U.S. network relies on different frequencies in the AWS 3G spectrum, supporting the 1700MHz and 2100MHz bands, while AT&T supports 850MHz and 1900MHz. The current iPhone hardware does not support the 1700MHz frequency, meaning a modification of the hardware would be necessary.

Another possibility could be regional wireless provider MetroPCS, the fifth-largest carrier in the U.S. Like Verizon and Sprint, it too operates a CDMA network.

Prior to Tuesday’s news, some had speculated that Verizon could pay Apple extra in their deal to keep the iPhone away from other carriers like T-Mobile and Sprint, leaving Apple’s smartphone only available from AT&T and Verizon.

Outside of the U.S., the new CDMA iPhone will likely also allow Apple to make the iPhone available on other carriers like China Telecom. Last October, it was rumored that Apple and China Telecom were already in talks to offer a CDMA variant of the iPhone.

Stay tuned for additional details as they become available.

Verizon announces iPhone, will begin selling units on February 10th

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Date: Tuesday, January 11th, 2011, 12:45
Category: iPhone, News

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You’ve been hankering for it for over a year.

And now it’s less than a month away.

Per Reuters, wireless carrier Verizon will begin selling a version of the phone on February 10 at the same prices as AT&T Inc.

“I’m going to switch right away. I’m going to go back to Verizon,” said Raheem Noble, 24, a New York City rapper, who was on his way to buy the device before being told that pre-orders would not begin until February 3.

The new phone puts an end to AT&T’s three-year-old status as the exclusive U.S. provider for the iPhone — but leaves questions over how much Verizon Wireless would be able to capitalize on the deal with Apple.

For one, Verizon did not say on Tuesday what it would charge for its iPhone data and service plans when the phone goes on sale. There were expectations that it would trump AT&T by offering the device with unlimited data service plans.

Verizon likely will announce those prices before pre-orders begin on February 3, said Verizon Wireless Chief Executive Daniel Mead. He said he was prepared for “unprecedented” demand.

The phone will not work all around the world because it runs on the CDMA network, which is not supported in many big markets such as the United Kingdom and France.

In addition, Verizon’s first iPhone customers may buy a phone that is outdated only months later if Apple upgrades the iPhone on its typical early summer launch schedule.

“Some buyers may want to wait for a new iPhone that is likely coming in June. I already had people coming to me asking, ‘should I wait?'” said BGC partners analyst Colin Gillis. “On the other hand, a surprising number of people just don’t want to wait.”

Some analysts, pointing to years of pent-up demand among Verizon Wireless customers, expect it to sell 9 million to 13 million iPhone 4 units this year.

Verizon, a venture of Verizon Communications and Vodafone Group Plc, said the phone would be available at 2,000 of its stores. Prices with a two-year agreement for US$199.99 for the 16-gigabyte model or US$299.99 for the 32-gigabyte model — comparable to what AT&T charges.

Still, there are some provisos to consider: A CDMA iPhone will not allow users to simultaneously support voice and data connections, the same limitation that faced users of the original iPhone connecting to AT&T’s EDGE network.

Kim Caughey Forrest, senior analyst with Fort Pitt Capital Group, which holds shares in Verizon, said she believes there are many people who have been reluctant to buy an iPhone because of worries about the quality of AT&T’s network.

As an example she cited her home town of Pittsburgh: “A lot of people in Pittsburgh are really excited about the prospect of having a Verizon iPhone. I don’t believe they are alone. I don’t think we are a unique market,” she said.

On the other hand, AT&T is expected to face its toughest year since 2004 as a result of the Verizon deal with Apple.

AT&T, which has come under fire for patchy wireless service in some cities, nonetheless added an estimated 15 million new iPhone customers in 2010. It has tried to reduce its dependence on the iPhone by adding other devices to its service.

“For iPhone users who want the fastest speeds, the ability to talk and use apps at the same time, and unsurpassed global coverage, the only choice is AT&T,” an AT&T spokesman said following the Verizon announcement.

One problem for Verizon Wireless may be the high cost of selling Apple products, which come at a premium to other smartphones, analysts said.

Like AT&T, Verizon Wireless will have to shoulder part of the cost of the devices to convince people to sign long-term contracts.

Verizon Wireless will have to pay a US$400 subsidy for each iPhone it sells if it keeps the price in line with AT&T’s, UBS analyst John Hodulik estimated.

Apple follows suit, drops iPhone 3GS handset price to $49 with AT&T contract

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Date: Monday, January 10th, 2011, 06:39
Category: iPhone, News, retail

Without a ton of fanfare, Apple has dropped the price of its entry-level 8GB iPhone 3GS handset to US$49 with a new two-year contract with AT&T, matching the new low price that last week was offered exclusively by the carrier.

The 8GB iPhone 3GS now retails for US$49, down from its original price of US$99. The price change came quietly, without an announcement from Apple, just a few days after AT&T revealed it had reduced the price of the iPhone 3GS as well.

Per AppleInsider, last week, AT&T made it clear that the price of the iPhone 3GS sold in Apple’s own channels, such as its retail and online stores, were determined by Apple itself, suggesting the US$50 price cut was solely AT&T’s doing. At the time, Apple’s official iPhone site still offered the 8GB iPhone 3GS for US$99.

The current-generation iPhone 4 models still carry the same price with a two-year AT&T contract. The 16GB model sells for US$199, while the high-end 32GB model has a price of US$299.

AT&T’s chief rival, Verizon, is widely expected to announce on Tuesday that it will carry a CDMA version of the iPhone in just a matter of weeks. While reports have said Verizon will offer the iPhone 4, no mention has been made of the iPhone 3GS, first released in 2009. If Verizon’s deal is only for the iPhone 4, the US$49 iPhone 3GS could remain an AT&T exclusive.

Starting with the launch of the iPhone 3GS in 2009, Apple began selling the previous year’s model with a two-year AT&T contract in the U.S. for US$99. While the initial US$99 handset from Apple was the iPhone 3G, last year that was upgraded to the 8GB iPhone 3GS when the iPhone 4 launched.

Rumor: Verizon iPhone to be announced Tuesday

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Date: Monday, January 10th, 2011, 06:29
Category: iPhone, News, Rumor

With multiple signs pointing towards the imminent release of Verizon’s iPhone, the Wall Street Journal has stated that a new deal will “upend the balance of power in the industry, ending Verizon rival AT&T Inc.’s exclusive hold on the device and leaving smaller players like Sprint Nextel Corp. and T-Mobile USA facing two well-capitalized competitors offering the world’s most popular smartphone.”

Citing “people familiar with the matter,” the report said that while “it wasn’t immediately clear when Verison would have the devices in its stores,” the carrier would be announcing details in its press conference scheduled for next Tuesday in New York.

It also said the device “would be similar to the existing iPhone 4, but run on the carrier’s CDMA technology.” Verizon made a big splash at CES surrounding its “4G” LTE deployment plans, but that new network won’t be available for voice calls until 2012.

The report noted that Apple’s exclusive deal with AT&T, which started in 2007, “has fueled much of the carrier’s subscriber growth and has given it a solid lead in smartphone customers.”

Additionally, it noted that “the arrangement between Apple and AT&T was groundbreaking at a time when carriers tightly controlled the appearance and function of their phones, and put Silicon Valley companies like Apple and Google in the wireless industry’s driver’s seat.”

At the same time, while “Apple feels it has had tremendous success through its exclusive relationship with AT&T,” the report stated, “it recognized that it needs to partner with Verizon to grow sales faster in the US.” A note filed by analyst Shaw Wu of Kaufman Bros in December said the carrier was “still excited” about launching Apple’s iPhone early next year “to combat slowing Android momentum in the US.”

Verizon has partnered with HTC and Motorola over the last year to promote Android phones in a hedge bet against BlackBerry’s inability to deliver a worth competitor to the iPhone. However, the carrier has since seen a drop in Android interest with the arrival of iPhone 4.

Despite its “Droid” branded push in 2010, “Top Verizon executives have continued to meet regularly with their counterparts at Apple, however” the report noted, “and have long expressed interest in carrying the iPhone, which could help add to the carrier’s base of 93 million subscribers.”

AT&T has braced itself for the loss in iPhone exclusivity that it has seen coming for some time, working to lock existing iPhone 4 buyers into two year contracts and relying upon family and business plans that make it hard for individuals to leave the carrier.

Other US carriers may be hit harder, including T-Mobile and Sprint, neither of which are expected to gain access to iPhone sales, even though the new CDMA iPhone should work on Sprint’s network, and the existing iPhone 4 can work on T-Mobile’s, albeit limited to the much slower, 2G GSM/EDGE service.

The report noted that Verizon’s iPhone launch event “threatens to overshadow Verizon’s keynote address Thursday at the Consumer Electronics show in Las Vegas, where the carrier touted its new 4G network and announced a number of Google-powered phones and tablet PCs designed to make use of the network’s capabilities.”

Verizon has invited Mac journalists to the event but has notably excluded Gizmodo staff from its invitation list, a move that all but confirmed that the event involved Apple.

Stay tuned for additional details as they become available.

AT&T now selling iPhone 3GS for $49 to qualified customers

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Date: Friday, January 7th, 2011, 03:18
Category: iPhone, News, retail

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Sometimes you have to do interesting things to stay in the game.

Per the cool cats at the Mac Observer, wireless carrier AT&T announced on Thursday that on Friday, January 7, it will start selling the 8GB iPhone 3GS for US$49 to new and upgrade-eligible customers. Last month, retailers including Best Buy and Radio Shack offered temporary $49 iPhone 3GS deals, but now that price point is official, at least from AT&T: at the time this article was posted, Apple’s online store continues to offer the iPhone 3GS for US$99.

Apple released the iPhone 3GS during the summer of 2009, but it continued to be sold for US$99 after the iPhone 4 was announced last summer. Radio Shack’s holiday deal last month also knocked US$50 off the price of the iPhone 4, but prices for the current-gen smartphone seem poised to remain where they previously were for the time being.

Rumors have persistedthat the iPhone is headed to Verizon soon, which may have prompted the price change by AT&T.

Stay tuned for additional details as they become available.

Unconfirmed iPhone 5/Verizon iPhone photos surface

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Date: Thursday, January 6th, 2011, 05:15
Category: iPhone, Pictures, Rumor

The nice thing about technology: there’s always something nifty on the horizon.

Or at least pictures of the nifty thing on the horizon.

Per SmartPhone Medic, new pictures claim to show a redesigned stainless steel frame for the iPhone, with new placement of black bands on the perimeter of the handset’s frame, the metal band which also acts as the phone’s antenna.

The photos from SmartPhone Medic claim to be from a “very reliable source” and purport to show an “unreleased iPhone design.” The alleged new frame is pictured next to the existing one used in the current iPhone 4.

The photos appear to have been doctored in order to, at the very least, remove shadows and colors from the white background. While no claims about the authenticity of the photos in question, they are reposted here for interest and discussion.

SmartPhone Medic gained attention last August, when it acquired a genuine front panel for the then-unannounced fourth-generation iPod touch, complete with a spot for a forward-facing camera. But unlike that scoop, the alleged iPhone frame published Wednesday is not a hands-on look, just pictures.

Both frames look largely the same in the pictures, but the alleged new part has a few key differences found in the placement of “antenna gaps.” The current iPhone 4 has three gaps — two on the side, one on top — while the pictured part shows four — two on each side, none on top.

The antenna gap on the bottom left side of the current iPhone 4 caused a major controversy last year, when it was revealed that bridging that gap with a hand or even a fingertip could result in degradation of wireless reception. There were numerous rumors that Apple would revise the design of the iPhone 4 to address the issue, but Apple instead held a press conference to explain the situation and offered customers a free “bumper” case to fix it.

The alleged iPhone part also shows the device’s frame with a retained spot for a micro-SIM card, suggesting it could be a redesign of the current GSM handset, or could be a new “world” phone with both GSM and CDMA. Apple is rumored to release a CDMA compatible phone in the near future.

Another possibility, if the frame is legitimate, is for a CDMA phone that also has a micro-SIM slot for 4G long-term evolution connectivity. While CDMA does not use a SIM card, Verizon’s high-speed 4G network does. Finally, it’s possible the alleged part could be for a prototype “iPhone 5,” thought Apple is not expected to release a full-fledged fifth-generation device until this summer.

Stay tuned for additional details as they become available.

Rumor: Apple could release Verizon iPhone on or prior to February 14th, 2011

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Date: Thursday, December 30th, 2010, 05:28
Category: iPhone, Rumor

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Apple is expected to hold an event “very soon,” perhaps by Valentine’s Day on February 14th 2011, to unveil a new CDMA version of the iPhone compatible with U.S. carrier Verizon’s network.

Per Bloomberg Businessweek, the alleged debut of the iPhone on Verizon is portrayed as an “enormous problem” for AT&T, the current exclusive carrier of the iPhone in the U.S. While AT&T has had sole access to the iPhone since 2007, problems with its network have caused bad press, including a recent reader poll from Consumer Reports ranking AT&T the worst carrier in America.

“Verizon enjoys a reputation for reliability,” author Peter Burrows wrote. “AT&T is notorious for dropping calls, especially in densely populated places like New York and San Francisco where iPhones are most common and cell towers get loaded.”

The report said that Apple would hold one of its own “splashy product introductions to announce a new version of the iPhone that work’s on Verizon’s network,” and said that event would “maybe” come by Valentine’s Day.

Some have speculated that Apple would instead allow Verizon to announce the product at the Consumer Electronics Show in early January, an uncharacteristic move for the typically controlling iPhone maker. But the report specifically stated that a CES unveiling is not in the plans.

“Apple’s introduction of an iPhone for use on Verizon’s network will come sometime after the Consumer Electronics Show in Las Vegas in early January, according to a person familiar with Apple’s plans who is not authorized to discuss them publicly,” Burrows wrote.

But while the apparently loss of exclusivity on the iPhone is cause for concern for AT&T, the report also suggested that Verizon could experience its own growing pains when Apple’s smartphone arrives on its network.

“At least initially, Verizon’s iPhone may have weaknesses compared to AT&T’s,” the report said. “The expense and hassle of changing carriers could also work to AT&T’s advantage.”

It also noted that iPhone customers may be less likely to switch from AT&T if they are still under contract, as the carrier upped its termination fee to US$325 in May of this year. The carrier also offered early upgrades for some iPhone 4 buyers whose contracts had not expired, locking them in to another two full years.

Stay tuned for additional details as they become available and if a Verizon iPhone is in your heart, please let us know what’s on your mind.