Apple posts $8.8 billion profit, $35 billion in sales for Q3 2012 returns

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Date: Wednesday, July 25th, 2012, 06:30
Category: Finance, News


There’s a nice ring to the words “US$8.8 billion quarterly profit”…

Per Macworld, Apple announced its returns for the third quarter of 2012 yesterday, the company’s sales hitting US$35 billion, up 22 percent from US$28.6 billion last year while profits rose 20.5 percent to US$8.8 billion from US$7.3 billion. Earnings for the quarter were US$9.32 a share, up 20 percent from last year. Reported earnings topped Apple’s forecast, but fell short of Wall Street expectations of US$10.35 per share on projected revenue of US$37 billion.

Apple sold 17 million iPads during the quarter, the most the company has ever sold during a quarter. The company tallied June quarter records for both Mac and iPhone sales—the latter figure coming even as customers have held off on purchasing a new iPhone in anticipation of a new model coming out later this year.

Despite the sales records, the third quarter saw the slowest growth rate for profit since 2009. Still, Apple finds itself better positioned than most tech companies. Sales of Macs, for example, rose during the quarter while the rest of the PC market saw a 1 percent decline, according to figures from market-research firm IDC.

Peter Oppenheimer, Apple’s chief financial officer, told analysts during a conference call that the company was “pleased” with its quarterly results.

The number that probably pleased Apple the most came from its surging iPad business, where Apple saw sales of its tablet grow 84 percent from the year-ago quarter. This was the first full quarter of sales for Apple’s third-generation iPad, which debuted on March 16. Apple is currently selling iPads in 97 countries.

Recognized revenue from the iPad lineup hit US$9.2 billion for the quarter, up 53 percent from the US$6 billion in revenue Apple recorded last year. Apple says it sold twice as many iPad as Macs to its education customers—and Apple just happened to set a record for Mac sales to U.S. educational institutions for the quarter.

As for its Mac business, Apple sold 4 million computers, up slightly from the 3.9 million Macs it sold in the year-ago quarter. Even with slight 2 percent gain, Apple still sold more Macs in this three-month period than in any June quarter before.

Those sales were largely driven by the revamped MacBook Air and MacBook Pro models Apple released, even though those notebooks came out less than three weeks before the end of the June quarter. According to Cook, prior to the release of those models at June’s Worldwide Developer Conference, Apple’s Mac sales were off last year’s pace. Once the updated MacBooks hit the market, though, Apple’s weekly sell-through increased, allowing it to beat last year’s figure and outpace PC industry growth for a 25th straight quarter.

In particular, Cook noted that the MacBook Pro with Retina Display has been “incredibly well-received. We still have not caught up with demand, but we anticipate doing so next month.”

Mac sales are usually dominated by portables, and this quarter was no exception. Notebooks accounted for three-fourths of the Macs Apple sold.

In addition to the June record for overall Mac sales, Apple executives noted that the quarter was the best ever for Mac sales to U.S. education institutions.

Apple sold 26 million iPhones during the quarter, compared to 20.3 million last year—another June quarter record for the company. The 28 percent growth in iPhone sales was also ahead of the amount Apple factored into its quarter guidance, Oppenheimer noted.

While Apple hasn’t made any iPhone hardware changes since it rolled out the iPhone 4S last year, it has been expanding the reach of its smartphone. During the June quarter, for example, the company added a number of regional carriers in the U.S. More than 250 carriers now provide service for the iPhone in 100 countries.

Recognized revenue from the iPhone rose 23 percent from last year to US$16.2 billion.

Despite the record sales, this quarter’s iPhone figures represent something of a blip for Apple. Both unit sales and iPhone revenue were down sequential in the third quarter; in 2011, unit sales and revenue rose from the second quarter to the third quarter. That’s largely a sign that customers may be holding off on iPhone purchases in anticipation of a new smartphone from Apple.

Pressed by analysts about the impact iPhone rumors might have on Apple’s bottom line, Cook said that while the company goes to great lengths to keep its product road map under wraps, he doesn’t put any value in clamping down on speculation about product releases.

“That’s just the environment we’re in,” Cook said. “I’m glad that people want the next thing. I’m super happy about it.”

Apple may have less reason to happy with its iPod sales, which saw another dip. The company sold 6.8 million music players, down from 7.5 million iPods in the year-ago quarter. Average selling price for iPods was also down for the quarter. Still, Apple notes that the iPod continues to hold a 70 percent share of the music-player market.

Combining iPod touch numbers with iPhone and iPad figures, Apple says that cumulative iOS device sales have reached 410 million units.

Revenue from the iTunes Store topped US$1.8 billion for the quarter; Apple brought its online music, movie, TV, and app store to 12 more countries.

Cook said that Apple sold 1.3 million Apple TVs during the quarter, bringing total sales for the fiscal year to 4 million units. The set-top box is “still at a level that we would call it a hobby, but we’ll continue to pull the string to see where it takes us,” Cook added.

During Tuesday’s briefing, Apple also unveiled the details of the stock dividend plan it first announced in March. The company will pay out US$2.65 per share on August 16, 2012 to shareholders of record as of the close of business on August 13. Subsequent dividends will be announced at the same time as the company’s results, with future payouts subject to declaration by the board of directors. Apple will begin buying back stock starting in its 2013 fiscal year, which starts September 30, 2012.

Both the dividend and the stock buyback program are part of Apple’s efforts to dispense with the massive amounts of cash the company has on hand. Apple ended the June quarter with US$117.2 billion in cash and short- and long-term securities, up from US$110 billion the previous quarter.

In terms of future performance, Oppenheimer told analysts to expect revenue of US$34 billion during the company’s fiscal fourth quarter and earnings of US$7.65 a share. That compares to 2011 fourth-quarter revenues of US$28.27 billion and earnings per share of US$7.02.

Apple offers final notice, warns users of July 31st closure

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Date: Tuesday, July 24th, 2012, 11:46
Category: News, Software

Ok, it’s time to stop procrastinating…

Per AppleInsider, Apple on Tuesday issued what it called a “final reminder” to users that they must save their documents before July 31 or lose them forever.

The beta website will close in one week’s time, after which users will no longer be able to access their documents on the site or view them on the web.

Apple has recommended once again that users immediately sign in to to download documents and ensure tehy are not lost. An accompanying support article also details how users can save a copy of their documents onto their computer.

“Moving forward, you can use iCloud to store your documents and make them available across your computer and your iPHone, iPad or iPod touch,” the e-mail sent out on Tuesday by Apple reads.

Apple has sent out numerous reminders, including one earlier this month, encouraging users to back up their documents. Apple first notified customers in March of its intent to shutter the website by the end of July.

The service first launched as a beta in early 2009, offering iWork users on the Mac the ability to more easily collaborate with others using Windows and Microsoft Office. Now, the iWork suite of applications is become available on iOS, with Pages, Numbers and Keynote among the most popular downloads on the iPad App Store.

So, yeah, snag those files, put them somewhere else and perhaps head out and grab a really good bagel between now and the 31st, because Apple has decided to move on.

Analyst pegs Apple to release 13-inch Retina Display MacBook Pro, updated iMac this fall

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Date: Tuesday, July 24th, 2012, 06:13
Category: iMac, MacBook Pro, News

Just hang on a few months and that Retina Display goodness should find its way to the 13-inch MacBook Pro.

Per AppleInsider, a Retina display-toting 13-inch MacBook Pro is expected to join the recently-released 15-inch model sometime this September and may be accompanied by an iMac refresh, writes analyst Ming-Chi Kuo in a note shared with investors.

Rounding out the KGI analyst’s forecast for the second half of 2012, Kuo expects Apple to bring a Retina display-resolution display to its 13-inch MacBook Pro line in September though demand may outweigh supply as components for the high-pixel density display are limited.

The reports is in line with two previous findings, both from online computer benchmarking sites that pointed to an unknown MacBook Pro fitting the description of a 13-inch Retina display model.

Kuo believes the device will be an attractive option to consumers looking to purchase the existing 13-inch MacBook Pro or MacBook Air due to the Retina display’s high-quality image reproduction. The analyst also claims customers will be drawn to the balance of power consumption and form factor as well as the unit’s price which should be somewhat similar to Apple’s non-Retina MacBook Pro.

While the laptop is expected to do well at launch, Kuo thinks sales growth won’t be meaningful as many consumers will gravitate toward iOS devices, especially so if Apple debuts a smaller, more affordable iPad in September. He goes on to say supply of the smaller high-resolution MacBook Pro will likely be constrained due to panel and assembly yield rates, a problem Apple is only now beginning to overcome with the 15-inch MacBook Pro with Retina display.

As for the iMac, Kuo believes a refreshed model could debut close to the end of September but qualifies the statement by saying indicators from the supply chain point to a later release. Shipments of Apple’s desktop products will dip in July due to inventory adjustments but are expected to dramatically rise in August as the new iMac starts shipping out from factories.

Regarding Apple’s overall financial outlook, Kuo sees zero growth across the line for Apple in the second quarter of 2012 on smartphone competition from Samsung, slow MacBook sales, a weakened global economy and the iPad’s late entry into China. Quarter three of the calendar year will likely pick up, however, as new product launches are expected to lead moderate growth ahead of the lucrative holiday shopping season.

Stay tuned for additional details as they become available.

Apple advises iOS developers on temporary fix for in-app purchase hack

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Date: Monday, July 23rd, 2012, 06:02
Category: iOS, News, Software


Apple on Friday issued a note to developers outlining a fix for an in-app purchasing exploit that allowed for the free download of for-pay content, and also announced that the loophole will be plugged when iOS 6 is released this fall.

Per CNET, in its support document for iOS app developers, Apple recommends that apps featuring in-app purchases follow a set of guidelines that includes confirming orders with the company’s new receipt system.

The receipt validation protocol, which Apple unveiled on Wednesday, attaches a “unique identifier” to in-app purchase receipts. This tactic effectively thwarts the recently-discovered workaround that validated dubious “purchases” by routing them to a specialized DNS server and spoofing digital receipts. Previous to the discovery, Apple sent generic receipts containing no unique user data.

“We recommend developers follow best practices at to help ensure they are not vulnerable to fraudulent In-App purchases,” said Apple spokesman Tom Neumayr. “This will also be addressed with iOS 6.”

Friday’s document includes instructions on how to setup and use Apple’s new validation system as well as how to validate transactions that have already gone through.

From the document:
“A vulnerability has been discovered in iOS 5.1 and earlier related to validating in-app purchase receipts by connecting to the App Store server directly from an iOS device. An attacker can alter the DNS table to redirect these requests to a server controlled by the attacker. Using a certificate authority controlled by the attacker and installed on the device by the user, the attacker can issue a SSL certificate that fraudulently identifies the attacker’s server as an App Store server. When this fraudulent server is asked to validate an invalid receipt, it responds as if the receipt were valid.”

As part of the damage control measures, Apple allowed apps to access certain non-public APIs pertaining to verification and security services.

Along with the support document Apple sent out an email to developers noting the exploit will be patched in iOS 6 when the mobile operating system is released alongside an expected next-generation iPhone sometime this fall.

Stay tuned for additional details as they become available.

Apple hires chip former AMD engineer John Bruno, looks to be expanding mobile devices

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Date: Friday, July 20th, 2012, 05:29
Category: Hardware, News


Give the man a chance and he’ll probably invent something truly cool.

Per SemiAccurate, former AMD chip architect John Bruno, known for his contribution to the chip maker’s Trinity Accelerated Processing Unit (APU), now lists himself as a “System Architect at Apple” via his LinkedIn profile.

While Bruno’s new position has not been officially announced, the profile change is thought to reflect Apple’s ongoing efforts to design high-performance, energy-sipping mobile processors for use in its iDevice line of products.

Bruno’s management of AMD’s second-generation APU project, dubbed Trinity, is well known and it is speculated that he may take a similar role at Apple. As a side note, Apple was rumored to be using the original AMD Fusion APU in its Apple TV in 2010, but the final product ended leveraged the proprietary ARM-based A4 processor.

Originally an employee of ATI, Bruno joined AMD in 2006 when the company acquired the graphics card manufacturer in 2006. He was ultimately axed amid wide-ranging job cuts last year that saw the departure of other high-level SoC engineers. Since being let go, Bruno has been “off the radar” and wasn’t reported to be attached to any major tech companies until Wednesday’s report.

Apple has long been rumored to be looking into moving its entire portable product line, including laptops, to the ARM platform but Apple leadership remains mum on the prospect. The tech giant was reported to be testing an ARM-based MacBook Air model in 2011, though the machine has yet to materialize. Apple CEO Tim Cook mentioned in February that the need for ARM-based thin-and-lights was not part of the company’s “post-PC” strategy and said the niche would soon be filled by the iPad.

Stay tuned for additional details as they become available.

Apple launches third-generation iPad in China

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Date: Friday, July 20th, 2012, 05:00
Category: iPad, News

Mental note: Head to China and pick up a third-generation iPad.

Per Reuters, Apple launched its Retina display-sporting iPad in China on Friday to orderly lines, a scene contrasting the company’s most recent product launches in the country which were marred with unruly crowds and scalpers.

A pre-sale reservation system instituted by Chinese Apple Stores appeared to be effective as the third-generation iPad launch went off without a hitch, perhaps uncharacteristically so for such a substantial release.

The scene came as a surprise to Apple customers, as many have become used to long lines and overnight waits to purchase the new products. Scalpers were also an issue as demand sometimes drastically outweighed supply. Apple in January was forced to halt sales of the popular iPhone 4S on launch day as a large group of customers became unruly upon hearing that the handset was sold out.

“I’m very surprised that there is no line,” said Sun Xufei, an IT worker who was first in line at the Shanghai Lujiazui Apple Store. “I thought there was going be a long line so I came over a bit earlier to pick it up.” The line Xufei was standing in was reportedly only about 20 people deep.

Apple adopted a pre-order system in which customers are prompted to reserve an iPad through the Apple online store between 9 a.m. and 12 p.m. after which they are assigned a time to pick up their device the next day. This allows the company to somewhat control the flow of foot traffic in and around the six official brick-and-mortar Apple Stores on the Chinese mainland. Hong Kong also has one Apple Store to serve the region’s over seven million residents which accompanies a network of authorized resellers dotted throughout the country.

The Wi-Fi-only third generation iPad first gained Chinese regulatory approval in March and was followed by the 3G wireless version in May.

If you’re over in China and just snagged a third-gen iPad, please let us know how your line experience went over in the comments.

Apple releases MacBook Air and MacBook Pro Update 1.0 for 2012 notebooks

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Date: Wednesday, July 18th, 2012, 15:44
Category: MacBook Air, MacBook Pro, News, Software

This could be helpful.

On Wednesday, Apple released its MacBook Air and MacBook Pro Update 1.0 for its 2012 notebooks. The update, a 76.6 megabyte download, fixes an issue that can lead to increased CPU power consumption, and it improves compatibility with some USB devices.

As always, the update can also be found and installed via Mac OS X’s Software Update feature.

The update requires a 2012 MacBook Air or MacBook Pro notebook and Mac OS X 10.7.4 or later to install and run.

Obviously, this is a significant firmware update, so please let us know how it went for you via feedback in the comments section.

Rumor: Next-gen iPhone to incorporate thinner screen, in-cell technology

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Date: Tuesday, July 17th, 2012, 08:33
Category: Hardware, iPhone, Rumor

That screen on your current iPhone 4S? It might just get a bit thinner.

Per the Wall Street Journal, Apple’s next iPhone “currently being manufactured by Asian component makers” will arrive this fall with a thinner screen than ever before, thanks to the combined might of Sharp, LG Display and Japan Display Inc.

“The technology integrates touch sensors into the LCD, making it unnecessary to have a separate touch-screen layer,” explains DisplaySearch analyst Hiroshi Hayase on the new in-cell technology. “The absence of the layer, usually about half a millimeter thick, not only makes the whole screen thinner, but the quality of displayed images would improve.”

In-cell technology comes at a convenient time for Apple as rival Samsung is pushing “organic light-emitting displays” as a key feature of its latest Galaxy S III Android handset, which features a 4.8-inch OLED screen, yet is even thinner than the current iPhone 4S.

“A thinner screen in the next iPhone could make the whole device slimmer, or make extra room available for other components such as batteries,” the report reveals, which could be crucial if rumors that the handset will use 4G LTE data prove true.

“But in-cell touch screens are harder to manufacture than conventional LCD screens,” the report continues. “The people familiar with the situation said that LCD makers are finding the manufacturing process challenging and time-consuming as they scramble to achieve high yield rates.”

The next iPhone is widely expected to include a 4.0-inch display, which is made possible by elongating the vertical height of the handset.

Stay tuned for additional details as they become available.

27-inch Thunderbolt display exhibiting noise issue with 2012 Retina Display MacBook Pro, MacBook Air

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Date: Tuesday, July 17th, 2012, 06:01
Category: Hardware, MacBook Air, News

Firmware updates were invented for a reason…

Per Electronista, a number of MacBook Air owners are experiencing audio issues when they connect their laptops to Apple’s Thunderbolt display and complain of static, distortion and crackling emanating from the speakers built into the 27-inch screen’s chassis.

The problem usually presents itself intermittently after a few hours’ use when sound from Apple’s new 2012 MacBook Air, which was announced during WWDC in June, is routed through the Thunderbolt display’s speakers.

It should be noted that as of this writing a single report claiming the same issue was found on the new MacBook Pro with Retina display, though it seems to be an isolated case not associated with the MacBook Air matter.

An Apple Support Communities thread started on June 23 is now six pages long though the issue seems to be affecting only a small number of users. Owners of both the 11-inch and 13-inch versions of the MacBook Air have reported identical problems, though some experience the issue more frequently than others.

The exact cause of the problem remains unclear though it could be related to how the thin-and-light’s firmware handles audio output. Sound played directly through the MacBook Air’s internal speakers are unaffected by the supposed bug meaning the issue lies in the interconnect.

Forum members have speculated that the adaptor needed to connect Apple’s new MagSafe 2 power connector to the Thunderbolt display’s power cord is somehow related to the static. This seems unlikely, however, as owners have unsuccessfully attempted to switch adaptors and run the laptop without plugging in to the Thunderbolt display’s power connector.

Most users have found that a workaround involving the switching between audio outputs solves the issue for a short time while others note that terminating and restarting an offending application gives temporary relief. Unplugging and replugging all connections also seems to remedy the problem.

Apple is aware of the issue though no official response has been released.

Stay tuned for additional details as they become available.

Adobe releases InDesign fix to alleviate crash on Ivy Bridge-equipped MacBooks

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Date: Tuesday, July 17th, 2012, 06:19
Category: MacBook Air, MacBook Pro, News, Software

It never hurts to issue a bug fix.

Per AppleInsider, Adobe on Monday issued a ZIP file complete with instructions to manually fix an API bug that would crash the company’s InDesign professional layout software on Intel Ivy Bridge-equipped MacBooks.

The fix comes less than a week after Adobe acknowledged a problem with its program and Apple’s OS X 10.7.4 which comes pre-installed on all 2012 MacBook Pros and MacBook Airs. According to a user support forum thread started in mid-June, the issue can be traced back to an API that handled InDesign’s system icons which was removed in the latest update to OS X.

The problem caused blank dialogue boxes to pop up as InDesign failed to retrieve the correct icon assets which in turn crashed the program.

It appears that the issue is confined to mid-2012 MacBooks that have “MacBook Pro (Mid 2012) Software Update” installed. Previous to Monday’s response some users created a workaround by rolling back the machine’s operating system to factory defaults.

Adobe is working closely with Apple on both their current and future OS releases to resolve this issue in a more comprehensive manner.

Adobe’s pseudo-patch involves the running of a script that installs three InDesign icons automatically or, for cases where the script does not run, a manual installation of the files directly into the application’s resources folder.

If you’ve tried the patch and have any feedback to offer, please let us know in the comments.