Apple cites $15.7 billion in sales, $3.25 billion profit for 2010 Q3 financial report

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Date: Wednesday, July 21st, 2010, 04:37
Category: Finance, News

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Apple generated its best quarter to date, reporting US$15.7 billion in sales and a profit of US$3.25 billion yesterday with shares accelerating US$3.51 per share, up 75% in the year over year from the same period in 2009. The company’s results beat analyst expectations of $3.10 a share and $14.74 billion in revenue according to Macworld.

The company sold a record 3.47 million Macs during the three-month period ended June 26, 2010, another quarterly record for the company that topped the previous high sales mark by 100,000 units. Mac sales increased 33% over the 2.6 million units Apple sold in the third quarter of 2009. Oppenheimer noted that Apple’s 33% sales growth topped the 22% growth rate market research firm IDC projects for the overall computer market.

As expected, portables drove Mac sales for the three months ending in June. Of the 3.47 million Macs sold, 71% were laptops.

The third quarter also marked the first full quarter of sales for the iPad, Apple’s new tablet. Apple said it sold 3.27 million iPads during the quarter with the company seeing US$2.17 billion in recognized revenue from iPad sales during the quarter. The tablet is currently shipping in 10 countries, and Apple plans to introduce the iPad to 9 more countries on July 23rd. The company also stated that it’s selling iPads just as fast as it’s making them, while attempting to increase manufacturing capacity.

Apple sold 8.4 million iPhones in the third quarter, a 61% jump over last year’s figures. The iPhone 4, which debuted in the waning days of the third quarter, made up about 20% of those sales—or more than 1.7 million units. Apple called the iPhone 4 launch the most successful product launch in its history.

Consumer demand for the new phone has been so great, in fact, that Apple has had trouble filling orders. Last month, the company announced that it would delay the release of the white iPhone 4—it’s expected to ship by the end of July. iPhone 4 orders placed through Apple’s online store list a three-week shipping wait as of this writing. (In contrast, the 8GB iPhone 3GS ships within 24 hours.)

Apple saw recognized revenue from its handsets of US$5.33 billion during the quarter, up 74% from last year’s figures. Apple says the iPhone has a sales value of US$5 billion, for an average selling price of US$595.

Combining the sales of the iPhone, iPad, and iPod touch, Apple sales there are now 100 million devices running its iOS mobile operating system.

iPod sales fell during the third quarter of 2010. Though the company sold 9.41 million iPods, the figure represented an 8% drop from the 10.2 million music players Apple sold in the year-ago quarter. The iPod segment has seen declining growth for some time now, particularly outside of the holiday shopping season. During the fiscal second quarter, iPod sales dipped by 1% while the 2009 third quarter saw a 7% decline in sales.

Despite the decline, the music device remains the top-selling MP3 player internationally and continues to command a 70% market share in the U.S. More significantly to Apple, the iPod touch continues to grow with Apple stating that sales of that product were up 48% from the year-ago quarter, leading to a 12% increase year-over-year in average selling price for the music player. Apple’s iPod segment saw quarterly revenue of US$1.5 million, a 4% increase from last year.

With regard to the iTunes Store, Apple cited more than $1 billion in revenue, a growth rate of 25% year over year. The mobile app segment of the store has grown to 225,000 apps, with 11,000 specifically built for the iPad. Users have download more than 5 billion apps from the App Store, Apple says.

Apple ended the third quarter with 293 Apple Store locations, the company opening seven more during the three-month period. Four of those new stores were opened in the U.S., while two opened in Australia; the remaining new store was in Canada.

Retail stores generated US$2.58 billion in revenue during the quarter, jumping 73% from the year-ago numbers. Apple sold 677,000 Macs via its retail stores, compared to 492,000 last year; half of the Macs sold at Apple Store were to customers new to the platform, Apple says.

Apple plans to open 24 stores during the fourth quarter. In addition to an outlet in Shanghai, China, that opened earlier this month, noteworthy store openings include ones in Paris, London, and Apple’s first two stores in Spain.

Apple ended its fiscal third quarter with US$45.8 billion in cash and short-term investments, up from US$41.7 billion at the end of last quarter.

For the fiscal fourth quarter ending in September, Apple expects revenue of US$18 billion and earnings per share to come in around US$3.44. Analysts were predicting sales of US$17.03 billion and earnings of US$3.82 per share in advance of Apple’s announcement on Tuesday.

Apple said it would defer revenue during the quarter as a result of its decision to offer free cases to iPhone 4 customers. Last week, the company made its free case offer after reports of reception problems related to the placement of antennas in the iPhone 4. Oppenheimer put the cost of the case giveaway at US$175 million; Apple will recognize the cost of those cases as they’re delivered to customers.

Rumor that Apple may charge iPad owners for iOS 4 upgrade debunked

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Date: Tuesday, July 20th, 2010, 04:05
Category: iPad, iPhone, iPod Touch, News, Software

A circulating rumor that Apple may charge users to upgrade the iPad to iOS 4 this fall is specifically contradicted by Apple’s own licensing agreement, which states that the next major software update will be free to iPad owners.

Citing “top secret plans” from an anonymous source, Stuff.tv reported on Tuesday that Apple currently plans to charge iPad owners for the software upgrade. The source did not provide a price, but the U.K.-based magazine suggested it would be around £5.

The source reportedly told the magazine that the plans to charge are “definite.” It reached out to Apple for a comment, and the Cupertino, Calif., company responded that it doesn’t comment on rumors or speculation.

However, the company’s iPad licensing agreements specifically state that the “next major iPad OS software release” will be free for hardware owners, casting some doubt on the rumor. Releases beyond that, however, may come with a charge.

“For example, if your iPad originally shipped with iPad 3.x software, Apple would provide you with any iPad OS software updates it might release up to and including the iPad 4.x software release,” the licensing agreement reads. “Such updates and releases may not necessarily include all of the new software features that Apple releases for newer iPad models.”

While it wouldn’t be unprecedented for Apple to charge for an upgrade, as previous software releases came with a fee for iPod touch users, due to an accounting issue, Apple eventually did away with that fee, as the iOS 4 upgrade is free for iPod touch owners.

Stay tuned for additional details as they become available.

Game Review: Predators™

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Date: Monday, July 19th, 2010, 11:41
Category: Fun, Game, News, Review, Software

The Predators game for iPhone, iPod Touch, and iPad is a direct tie-in with the recently released Predators movie by Robert Rodriquez (directed by Nimrod Antal) distributed by Chillingo for Fox Mobile. I haven’t seen the movie yet but I’ve been told it’s good fun and the game seems to do it’s job of getting me a little more jazzed to see it. Unlike a lot of game-movie tie-ins, this game actually has some solid play value.

One of the things appreciated about this game is that is it a Universal app, meaning the same app plays on all three “i” devices. An issue that bugs me a little is games that require you to buy a completely new app in order to play it in full resolution on the iPad. I understand that developers have to make money, and that they do have to do some extra work, but it just feels wrong to have to pay a second, higher price for a game I already paid for. I wish they would just work out a system to upgrade to a Universal app for the difference of the two. On a side note, I had a problem with the game on my iPad crashing on launch, but rebooting the iPad seems to have fixed it so far.

Off my soap box, and onto the action.

In this game, you are playing the role of the Predator which is a nice switch up. This is probably because he has all the cool gadgets. The first several “missions” teach you the essentials of mauling and beheading humans for trophies. There are also in-play tutorials for learning to use the gadgets like the wrist knives, shoulder cannon, and the cloaking device. Later, you also get other abilities like thermal vision. I really liked how the tutorials played out so you can get used to using just one weapon or combo attack, rather than just being thrown into a melee and having to figure it out.

The game isn’t strictly a shoot ‘em up either. In some scenarios, you get more points for stalking your prey in cloaked mode, and killing humans undetected. There are also human “boss” characters which represent the main characters from the film such as Royce who is played by Adrian Brody in the film. These guys are harder to beat. I haven’t gotten too far in the game, but so far the terrain has just been your basic jungle with some different environmental factors like darkness or rain (with makes you more visible in cloaked mode). I’ve been through about seven levels and it hasn’t gotten boring yet, so I hope it just keep getting better.

The game stays very true to the Predator feel and mythos. Even the crosshair for the shoulder cannon works like it did in the movie and you can shoot people behind you. The graphics can be a bit gruesome if you are worried about younger audiences. There is lots of blood and your Predator very clearly rips people in half and pulls their head off with a nice, wet, ripping sound. Obviously the graphics are very good and optimized for the iPhone 4 and iPad, and the sounds are quite good as well; probably taken directly from the movies. You will also be happy to know that the game is compatible with iOS 4′s backgrounding, so you can leave in the middle of a mission and come back in the same spot and continue. There is also a pause menu too, until the iPad gets iOS 4.

I liked the iPad version the best, but mainly because the controls cover less screen than the iPhone version. Menus are slightly different for the iPad, but the gameplay is identical to the iPhone/iPod Touch version. I liked that none of the combos were too complicated. I find that annoying about some console games because you end up concentrating too much on how many buttons to push instead of the game. The controls are pretty good and straightforward. There is a “joystick” on the left and action buttons on the right. There are also toggles for things like night vision, weapons, and cloaking. It isn’t a problem for me, but I’d like to see more games give people the option of flipping the controls. The only problems I had were the ones inherent in a touch-based system; when the action gets fast, you tend to slide your fingers off the controls and can’t center again without looking away form the action. Perhaps I have more trouble with this than most people, but I can’t really fault the game for this.

Lastly, the game uses the Crystal gaming network. The frustration I have with all the game networking systems could be a whole post in itself. I’m waiting to see how Apple’s Game Center changes things. Developers naturally have investments in tying themselves to particular systems, but I wish you could choose which system to use for each game instead of being forced to use the one the developer picks.

I highly recommend this game. If you like action games, shooters, and anything to do with Predators, this game is a steal at $2.99.

Apple releases iOS 4.0.1 for iPhone, iOS 3.2.1 for iPad, hunts down long-standing bugs

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Date: Friday, July 16th, 2010, 04:03
Category: iPad, iPhone, News, Software

Following up on rumors, Apple has released iOS 4.0.1 via iTunes. Per MacNN, the update makes just a single major change, that being improved accuracy in iPhone signal display. The company recently promised a software fix in light of reception issues, though it’s now believed the problem is traceable to hardware. The download is only available for the iPhone 3G, 3GS and 4.

For iPad owners, Apple has meanwhile posted iOS 3.2.1. The firmware solves several issues, most notably trouble with Wi-Fi connections. It also corrects a glitch with PDF attachments in Mail, and two video bugs: one causing videos to freeze, and another hampering the official iPad Dock Connector to VGA Adapter. The one feature addition is Bing support for Safari search.

To download and install the updates, which each weigh in at over 300 megabytes, attach your iPhone or iPad to your computer, open iTunes, select the device and search for an update. The process will occur as per usual.

Apple is scheduled to hold a full iPhone 4 press conference today. Stay tuned to the PowerPage for additional details as they become available.

And if you’ve noticed any major changes or would like to offer feedback on this, let us know.

Rumor: Apple to incorporate OLED displays into future iPad models

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Date: Tuesday, July 13th, 2010, 06:03
Category: iPad, News, Rumor

It’s the rumors that make the technology business interesting and in spite of the high cost of OLED displays and Apple’s continued support of LCD screens with IPS technology, whispers of a next-generation iPad with an OLED screen continue to resurface.

Per DigiTimes, sources close to the story have indicated that Apple plans to launch a second-generation iPad as soon as the fourth quarter of 2010. The new hardware would reportedly use 5.6-inch and 7-inch OLED displays, with Compal Electronics in the running to supply Apple.

The new models would be in addition to Apple’s successful 9.7-inch iPad, which would receive “some minor changes,” the report said. The smaller 5.6″ and 7″ iPad models would “mainly target the e-book reader market, separating them from the 9.7″ model, which mainly targets multimedia entertainment,” the report said.

It noted that costs of OLED panels are expected to drop, as Samsung Electronics and LG Display have been devoting resources into the development of panels. “With Apple’s brand image and high average selling price (ASP), Apple should have no problem adopting OLED panels, which have higher price than standard panels, into its devices,” the report said.

DigiTimes Research senior analyst Mingchi Kuo responded to the rumors and noted that Samsung cannot currently meet capacity for OLED displays on its own handsets, making it unlikely they would be able to supply Apple by the fourth quarter of 2010. In addition, Compal is “unlikely” to pursue orders with Apple, because its manufacturing gross margins are much less than what is offered by others.

Rumors of an OLED display on the iPad have been present since before Apple even formally announced the device and have continued to resurface since, with DigiTimes also reporting in April that Apple could adopt OLED displays for its second-generation iPad. At the time, the Taiwanese publication also reported the rumors, but simultaneously cast doubt on them through the analysis of Kuo.

The current iPad LCD screen uses IPS, or in-plane switching, technology. It was developed by Hitachi in 1996, and offers improved viewing angles and color reproductions on screens.

Stay tuned for additional details as they become available.

We Have a Winner: Outlet Charging Proves Faster for iPhone 4

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Date: Monday, July 12th, 2010, 04:02
Category: iPhone, iPod, News

Among the great debates of computer technology (along with whether or not to shut your computer down for the night or put it to sleep and how this affects the hardware) is the question as to whether or not to charge an iPhone or similar device via an outlet or USB port. Even in the case of charging an iPad, where the user receives a “not charging” message near the battery indicator, the device is charging, but slowly.

The guys over at When Will Apple? took the time to do a pretty decent job of comparing charging times on the iPhone 4, comparing USB to AC outlet. The conclusion: USB charging takes 23% longer to charge an iPhone 4 than charging via an AC outlet. If you’re in a rush to charge your phone, that’s a pretty significant difference.

The little flaw in this test is not knowing the amount of charge coming from the USB port used, as not all USB ports are created equal.

If you’ve found a different result on your end, please let us know.

How-To: deactivate Network Services to improve iOS device battery life

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Date: Thursday, July 8th, 2010, 04:31
Category: How-To, iPad, iPhone, iPod, News

Although the iOS 4 software update has been lauded as improving battery life for most users, some are finding the improvements lacking. Per the Apple Toolbox Blog, one source of this may be overuse of the Location Services feature which can accompany checking Push notifications, and having many open Safari windows open.

It now appears that overactive location services usage can result in poor battery life. Specifically, apps that use location services in the background can quickly drain the battery.

The post offers the following steps for resolving this and hopefully upping your iOS device’s battery life:

“To check location services usage on an app-by-app basis, navigate to Settings > General > Location Services.

Turn location services off for all applications, then turn them back on for desired apps one by one or in groups. Via this procedure, you can identify which app’s use of location services is draining battery.

Alternatively, you can temporarily turn off location services altogether and check for increased battery life.”

Apple releases version 1.2 of MobileMe iDisk app, adds iPad support

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Date: Wednesday, July 7th, 2010, 04:58
Category: iPad, News, Software

Apple on Tuesday released version 1.2 of its MobileMe iDisk application, bringing support for multitasking within iOS 4 for the iPhone 3GS and iPhone 4, as well as native support for the iPad.

The 3.4MB update is available from the App Store or through iTunes. New features in version 1.2, according to Apple, include:

- Designed for both iPhone and iPad.

- Multitasking support for iPhone 4 and iPhone 3GS (iOS 4 required).

- Quickly switch to another app and back using iDisk.

- Play audio from your iDisk while using another app.

- When app is opened, the last file or directory viewed is displayed.

- Option to open iDisk documents in compatible apps such as iBooks.

- When sharing a file, an email can be sent from any configured email account.

- The URL for a shared filed can be copied and pasted.

- Various stability improvements.

The iDisk application was first released for the iPhone and iPod touch in July of 2009. It allows users to remotely access files saved online via the MobileMe service.

iPhone 4 gyroscope goes under the microscope, could find its way into future iPad

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Date: Thursday, July 1st, 2010, 04:41
Category: iPad, iPhone, News

In as much as the iPhone 4 has drawn criticism, it does sport some nifty new technologies.

Among this is its new gyroscope, which could find its way into a future revision of the iPad.

Per InformationWeek, UBMTechInsights took a look inside Apple’s new iPhone 4 and found it was made by STMicroelectronics. The three-axis MEMS gyroscope is made by the same company that produces the accelerometer found both the iPhone and iPad.

Steve Bitton, senior analyst with TechInsights, noted that there is an empty slot on the iPad motherboard, perfectly sized to fit the gyroscope found in the iPhone 4. It is also located next to the accelerometer, and within proximity of the application processor.

The discovery suggests that Apple originally planned to have a gyroscope in the iPad, released in April in the U.S., but ultimately decided to leave the sensor out of the first-generation hardware.

But the pin out on the iPad motherboard doesn’t match the STMicroelectronics gyroscope found in the iPhone 4 — instead, Bitton said, it resembles a competing three-axis sensor made by InvenSense.

“When Apple’s iPad first came out, the InvenSense gyro was the only three-axis digital gyro on the market, so Apple may have designed its board with that component in mind,” the report said. “Indeed, Apple may have included it in the iPad initially, but may have ultimately decided against using it in either device.”

The cool cats at iFixit have also conducted a closer look at the iPhone 4 gyroscope, with the help of Chipworks. It also revealed that the gyroscope is made by STMicroelectronics, labeled AGD1 2022 FP6AQ. The microelectromechanical system (MEMS) integrates electronic and mechanical components at a very small scale to measure the orientation of the device.

X-ray photos of the gyroscope found that it is nearly identifcal to the off-the-shelf STMicroelectronics L3G4200D model. It includes a “proof mass” that is displaced in X, Y and Z directions by Coriolis forces when a user rotates the phone. Another die found inside converts those capacitive signals into a digital form that can be interpreted by the iPhone 4.

The gyroscope allows for far more precise movements with the device. One of the first App Store offerings to demonstrate this capability is Eliminate:GunRange, a US$0.99 title from ngmoco, Inc. The software allows users to conduct virtual target practice by aiming their onscreen gun with precise movements of the device, something that is only capable with the gyroscope found in the iPhone 4.

Apple drops hint at iOS 4 for iPad in November, iWork for iPhone

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Date: Tuesday, June 29th, 2010, 04:04
Category: iPad, News, Software

When iOS 4 hit, I was a little disappointed to see that it had yet to arrive for the iPad.

This may change as Apple has quietly hinted at a launch window for iOS 4 on the iPad, while the company’s website has slipped another clue that iWork is on its way to the iPhone. An AdAge report suggests that Apple has been telling marketers that the iAd platform will extend to the iPad sometime in November.

Steve Jobs initially pointed to iOS 4 availability on the iPad sometime “this fall.” The iAd platform is known to be directly integrated with iOS 4.

Many of Apple’s international online stores posted a “Learn more” link for iPhone AppleCare warranties, which includes software support for “iWork for iPhone” among other topics. The iOS 4 pages briefly included an iPhone interface image showing an option to open an attachment in Keynote, although the company quickly replaced the iWork reference with an iBooks selection.

Cool stuff either way and you have to wonder what iOS 4 will bring for the iPad.