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

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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 iWork.com 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 iWork.com documents before July 31 or lose them forever.

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

Apple has recommended once again that users immediately sign in to iWork.com 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 iWork.com website by the end of July.

The iWork.com 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 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

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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.

AT&T to launch shared data plans in late August, offer base price around $45 per smartphone

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Date: Wednesday, July 18th, 2012, 06:15
Category: iPad, iPhone, News

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You can’t argue with a bit of competition.

Per AppleInsider, wireless carrier AT&T on Wednesday announced its new shared data plans, ranging from 1 gigabyte to 20 gigabytes of cap space, and starting at US$40 for 1 gigabyte of data plus an additional US$45 per smartphone.

The cost per gigabyte and smartphone decreases as customers add more data to their plan, so 4 gigabytes of data has a base price of US$70, plus US$40 per smartphone, all the way up to US$200 for 20 gigabytes of data per month and US$30 per smartphone.

Cellular capable tablet-style devices like Apple’s iPad are less expensive, and will cost US$10 per month to add to a shared data plan. Laptops and mobile hotspot devices are another US$20 each month, while basic and messaging phones can get shared data, unlimited talk and text for US$30 each month.

The new shared data plans allow customers to choose open of AT&T’s existing individual or family plans, and current customers are not required to switch to the new plans. Those who decide to switch to AT&T’s shared data plans can do so without a contract extension, and the rates are also available for business customers.

Customers can choose up to 10 devices to attach to their shared plan, and at least one of those devices must be a smartphone. The plans include tethering and unlimited domestic calls and texts for smartphones.

Competing U.S. carrier Verizon launched its own shared data plans on June 28, called “Share Everything.” With it, line access for smartphones like Apple’s iPhone run US$40 per month, while tablets like the iPad are US$10 per month.

Stay tuned for additional details as they become available.

Apple releases iOS 6 beta 3 to developer community

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Date: Monday, July 16th, 2012, 12:26
Category: iOS, News, Software

You can’t have a final version without a few betas…

Per AppleInsider, Apple on Monday supplied developers with the third beta of iOS 6, arriving three weeks after the previous beta build, adding new features like expanded settings for the Maps application..

Developers can now download iOS 6 beta 3 from Software Update on their iPhone, iPad or iPod touch. In addition, full downloads are also available from Apple’s developer portal.

Sources familiar with the latest build indicated that there are new options in the Settings application for Apple’s new Maps software. Specifically, the third beta now allows developers to customize certain aspects like the volume of turn-by-turn navigation, and whether to measure distances in miles or kilometers.

The last update, which arrived in late June, included a pair of fixes related to touchscreen keyboard performance. iOS 6 beta 3 is compatible with the third-generation iPad, iPad 2, iPhone 4S, iPhone 4, iPhone 3GS, and fourth-generation iPod touch. The final software will be released to the public this fall.

iOS 6 was formally announced last month at Apple’s annual Worldwide Developers Conference. Developers were also provided with the first beta after its unveiling, allowing them to test their applications before the formal public launch this fall.

Stay tuned for additional details as they become available.

Rumor: Apple to release 7.85-inch iPad this fall at sub-$499 price point

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Date: Monday, July 16th, 2012, 06:02
Category: iPad, Rumor

A rumor’s got to be true on some levels…

Per the New York Times, previous rumors have been confirmed saying consumers can expect the as-yet-unannounced iPad to boast a 7.85-inch form factor and cost “significantly less than the latest US$499 iPad” when it debuts later this year.

Previous reports from The Wall Street Journal and Bloomberg both claimed Apple was working on the so-called “iPad mini” and said the new device is expected to launch before year’s end.

Most recently, images of purported iPad mini “engineering samples” were leaked and included side-by-side comparisons with the current third-generation iPad. The samples showed a rearranged speaker assembly flanking a diminutive 19-pin dock connector seen before on alleged next-generation iPhone parts.

According to analysts and executives in the technology industry, the smaller iPad is part of an Apple strategy to garner and retain a larger marketshare by introducing a variety of tablet sizes. The publication notes the Cupertino-based company used a similar model with the iPod line which now ranges from the iPod shuffle to the iPod classic.

If and when the iPad mini is announced, it will be facing stiff competition from Google’s recently-announced US$199 Nexus 7 Android tablet as well as expected offerings from Amazon. The online sales giant is rumored to be readying three distinct 7-inch Kindle Fire models for fall as well as an 8.9-inch version that may be released in late 2012 or early 2013. Sunday’s Times report cites sources who claim the larger-screened Fire is being developed as a competitor to Apple’s 9.7-inch iPad.

Yet another new entrant into the tablet arena is Microsoft’s Surface, a Windows 8-powered device set to be the centerpiece to the company’s “PC+” environment despite CEO Steve Ballmer’s claim that the unit is merely a “design point.” Rather than creating hardware and software separately for different tasks, as does Apple with the iPad and iOS, Microsoft believes that a one-OS-fits-all solution is the future of computing. The ARM architecture-based Surface for Windows RT is expected to debut alongside Windows 8 in October.

Stay tuned for additional details as they become available.

Apple to launch third-gen iPad in China on July 20

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Date: Tuesday, July 10th, 2012, 07:45
Category: Hardware, iPad, News

Apple on Tuesday announced that its new third-generation iPad will debut in mainland China next week, on Friday, July 20.

Per AppleInsider, the new iPad will be available in China through the Apple online store, select authorize resellers, and by reservation from Apple retail stores. Customers can make reservation requests beginning Thursday, July 19 for pickup the following day between 9 a.m. and 12 p.m.

The new iPad Wi-Fi models will be available in black or white for a suggested retail price of US$499 for the 16GB model, US$599 for the 32GB model and US$699 for the 64GB model. The iPad Wi-Fi + Cellular models will be available for a suggested retail price of US$629 for the 16GB model, US$729 for the 32GB model and US$829 for the 64GB model.

In addition, Apple will also offer the iPad 2, its 2011 model, for US$399.

The July 20 launch date announced on Tuesday is a full week earlier than recent reports had suggested the new iPad will debut. Availability of the new iPad in China will come quickly after Apple reached a US$60 million settlement with Proview for the right to use the “iPad” brand name in China.

The Wi-Fi-only variant of the new iPad gained regulatory approval in China back in late March. Then a month later, in May, the 3G version was also certified for sale by the nation’s government.

It was speculated that the trademark dispute with Proview was the main reason the new iPad had not yet debuted in China. Last year, the iPad 2 launched in China on May 6, debuting a month and a half earlier than the new iPad will be introduced in 2012.

Apple’s new third-generation iPad initially launched in 10 places around the world on March 16, including Hong Kong, but not mainland China. Other launch territories in March were the U.S., Australia, Canada, France, Germany, Japan, Singapore, Switzerland, and the U.K., as well as Puerto Rico and the U.S. Virgin Islands.

Stay tuned for additional details as they become available.

Rumor: Apple to produce 7-inch iPad in Brazil, currently aiming for fall release

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Date: Monday, July 9th, 2012, 06:38
Category: Hardware, iPad, Rumor

Something nifty could be happening south of the border.

Per Macotakara, Apple is working on a smaller format iPad that will be assembled in Apple manufacturing partner Foxconn’s Brazil factory starting in September for a holiday release.

According to the story, a “reliable Chinese source” said that while CNC machine testing for Apple’s much-rumored 7-inch tablet has completed in China, the actual production of the unit will take place at Foxconn’s plant in Brazil which is currently tasked with building iPhones and certain iPad models.

The source goes on to further detail the manufacturing plans and, contrary to recent whispers, quotes September as the expected production start date which will ramp up in time for the lucrative holiday shopping season.

While consensus remains on the tablet’s 7.85-inch screen size the form factor is somewhat up in the air as the source said the new device will be more akin to a third-generation iPod nano than a shrunken iPad. The prototype device is reportedly the same height as Google’s recently-announced Nexus 7 but is slightly wider and manages an iPod touch-like thickness that is said to be slimmer than Amazon’s Kindle Fire.

Also on tap for the “iPad mini” is 3G wireless connectivity, though the source claims to have seen a handling list of carriers slated to receive the device and it seems not every provider that currently sells the iPad will have access to the device at launch.

The Japanese publication’s source also agreed with a previously reported rumor that claimed a next-generation iPhone would debut in September.

Stay tuned for additional details as they become available.