Apple posts $54.5 billion in revenue, $13.1 billion profit for Q1 2013 financial returns

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Date: Wednesday, January 23rd, 2013, 21:21
Category: Apple TV, Finance, iPad, iPhone, iPod, News, retail

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It was a profitable quarter, but there were setbacks compared to last year.

Per Macworld, for the company’s first fiscal quarter of 2013, Apple posted revenue of US$54.5 billion and a net profit of US$13.1 billion. Revenue rose 17.7 percent from the 2012 first quarter, while profit was flat year-over-year. Apple earned US$13.81 per share, down half-a-percentage point from the US$13.87 it earned in the year-ago quarter.

Apple’s quarterly performance was in line with Wall Street expectations. Analysts were looking for sales of around US$54.7 billion for the quarter and earnings per share of US$13.42.

iPhone sales hit a record for the quarter ended Dec. 29, 2012, up 29 percent year over year to 47.8 million phones. That was within the 46 to 47 million range analysts were looking for. Apple says it sold 3.7 million phones a week during the quarter, compared to weekly sales of 2.6 million during the 2012 quarter.

iPhone sales growth was strong in all sales regions, Oppenheimer said, but particularly in Greater China, which includes China, Taiwan, and Hong Kong. Sales doubled year over year in that region.

Oppenheimer credited the “tremendous popularity” of iPhone 5 for driving Apple’s phone business—a not so subtle slap at rumors of sluggish iPhone 5 sales. Breaking with Apple’s typical practice of not addressing rumors, Cook did dismiss reports of iPhone order cuts.

iPad sales also set a new high-water mark, with 22.9 million tablets sold, compared to 15.4 million last year. That translates to more than 1.7 million iPads sold per week, a 60 percent increase from the year-ago quarter, according to Oppenheimer.

As is its custom, Apple didn’t break out sales figures between iPad models—it currently offers the iPad 2, a fourth-generation model of its full-sized iPad, and the iPad mini. Oppenheimer called the smaller version of Apple’s tablet a “tremendous hit.”

For the quarter, Apple sold more than 75 million iOS devices.

The company sold 12.7 million iPods, down about 21 percent compared to the year before. The iPod touch was (as always) popular during the holidays, and still accounts for more than half of all iPods sold. The company claims that the iPod owns more then 70 percent of the market for MP3 players.

iTunes generated US$2.1 billion in revenue, and the company established new all-time quarterly sales records for music, movies, and apps. The company added music stores in 56 countries, for a total of 119 around the world. The App Store sold 2 billion downloads in December; cumulative downloads have surpassed 40 billion, generating US$7 billion in payments to developers.

Apple made brief mention of its Apple TV offering, noting that it sold more than 2 million settop boxes during the holiday season quarter. That’s a 60 percent increase from the prior year.

Revenue from Apple’s retail effort was US$6.4 billion—an all-time high and a 5 percent increase over the 2012 first quarter. The company says that revenue is largely due to iPad and iPhone sales.

Apple opened 11 new stores, including four in its Greater China region. It expects to invest a bit less than US$1 billion in its retail stores this fiscal year.

Apple once again noted that the cumulative downloads have now surpassed 40 billion for the App Store, generating US$7 billion for developers. There were 2 billion downloads in the month of December alone.

Unusually, Apple did not break out the percentage of customers who purchased Macs at Apple Stores who were new to the platform. (In the past, that company has hovered consistently around 50 percent.) That omission could be a byproduct of the dip in Mac sales during the quarter.

For the second quarter ending in March, Apple expects sales to come in between US$41 and US$43 billion. That number would be slightly ahead of the US$39.2 billion in revenue the company logged in the 2012 second quarter. Apple is no longer giving analysts a forecast on earnings per share for the quarter, instead providing its expectations for gross margin and operating expenses in addition to revenue. (Apple expects gross margin to be between 37.5 and 38.5 percent for the upcoming quarter while operating expenses will come in at US$3.8 and US$3.9 billion.)

DigiTimes falls back on larger-screen iPhone story, agrees with Wall Street Journal’s assessment of next-gen iPhone hardware

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Date: Wednesday, January 23rd, 2013, 07:55
Category: Hardware, iPhone, News

Sometimes you’re dead-on, other times it’s time to head back to the drawing board.

Per AppleInsider, Taiwanese publication Digitimes on Tuesday backpedaled on its previous claims that Apple would be launching a cheaper, yet larger-screened, iPhone variant in 2013 to combat a growing low-end “phablet” market.

While DigiTimes reversed its original take on big-screen iPhone debut, the publication is hedging its bets and contends that Apple will eventually release such a handset, just not in 2013.

The report went on to agree with the The Wall Street Journal’s story, which previously claimed that Apple is planning on releasing two separate iPhone models this year. In its piece, the WSJ cited sources as saying both a successor to the current iPhone 5 and a budget smartphone, possibly made of polycarbonate, would launch sometime in 2013.

Adding to Tuesday’s rumor, DigiTimes noted that both the next-generation iPhone and rumored handset will feature in-cell touchscreen panels. The current iPhone 5 already boasts the advanced screen tech that allows for a thinner device by integrating touch sensing components within the LCD array. Yield rates of the complex displays caused supply constraints when the latest iPhone launched last year, but those production issues are said to have been corrected.

The latest rumor may be unfounded, however, as Apple is thought to have chosen older touchscreen tech, in addition to non-Retina resolution panels, with the iPad mini in attempts to capitalize on already slim margins. In-cell screens are not yet an industry standard and therefore substantially raise a device’s bill of materials.

Stay tuned for additional details as they become available.

Opera demos “Ice” web browser for iOS, Android devices

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Date: Monday, January 21st, 2013, 08:59
Category: iPad, iPhone, News, Software

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It never hurts to have a wider array of web browser choices for your iOS device.

Per Pocket Lint and AppleInsider, Opera Software on Friday unveiled its latest project, a WebKit-based mobile browser called “Opera Ice” that is specifically designed for screen formats seen on popular smartphones and tablets, including the iPhone and iPad.

In an internal video released on Friday, Opera gave a brief look at a beta of the new app, which features an icon-based interface much like the optional homescreens seen on desktop versions of Apple’s Safari and Google’s Chrome browsers.



According to the developers, the app was designed to hide the usual clutter seen with modern web browsers, including the ubiquitous URL bar, that takes up limited screen real estate on mobile devices. The so-called “full touch browser” does away with buttons and menus to create a spartan user interface driven by screen taps and gestures.

Instead of the Presto rendering engine that Opera has used for years, Ice is based on WebKit, the same engine used by both Apple and Google. The move is meant to keep Opera in the fast-changing mobile market.

“We need to focus on getting strong products out on iOS and Android,” said Opera CEO Lars Boilesen.

As for the company’s current mobile solution, Opera mini, Boilesen said that it won’t be replaced by Ice. Instead, the platform will be leveraged to generate users that will eventually be migrated over to new mobile apps. Opera Ice is expected to debut sometime in February, while a new unannounced desktop browser is slated for a March release.

Stay tuned for additional details as they become available.

Apple patent shows e-wallet program with controllable accounts for children

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Date: Friday, January 18th, 2013, 08:28
Category: iOS, News, Patents, Software

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This could be useful.

Per FreePatentsOnline, a recent patent application shows Apple’s idea for an “e-wallet” iPhone application that would allow subsidiary accounts for children, complete with customizable spending limits and restrictions.

Apple’s interest in the concept was revealed in a patent application published Thursday by the U.S. Patent and Trademark Office entitled “Parental Controls.” It describes ways that a user could establish rules for subsidiary financial accounts.

The proposed invention shows a hypothetical application on the iPhone home screen named “E-Wallet.” The software allows users to have a primary account tied to a credit card, allowing transactions to be conducted with an iPhone.

The key feature of the filing are the E-Wallet subsidiary accounts. By creating one, the user can allow new users, such as children, to have access to the E-Wallet app with controlled spending limits.

The customizable rules would allow a parent to set, for example, a weekly or monthly allowance for their children. The application would also enable parents to decline transactions if they are over a certain amount of money.

Parents could also restrict transactions from certain merchant categories, or even block sales to a specific merchant or location. In one example, the application is set to prevent the user from purchasing alcohol or tobacco with Apple’s iPhone e-wallet.

Illustrations included in Apple’s patent filing show that the concept for the E-Wallet application would include purchase history, bill summary, and the ability to search for specific transactions. The E-Wallet app would be driven by users’ existing credit cards, with numbers entered into the software to link them together.

The filing goes on to note that a future iPhone could have an integrated near-field communication chip to supplement the E-Wallet app. It notes that communication using the NFC component would occur in a range of 2 to 4 centimeters.

The proposed invention, published by the USPTO this week, is a continuation of a filing first made by Apple in January of 2009, and issued as U.S. Patent No. 8,127,982 in March of 2012. It is credited to Brandon J. Casey, Gary L. Wipfler, and Erik Cressall.

Not the worst idea in the world and please let us know what you think in the comments.

Sprint to add 28 cities to 4G LTE network in coming months

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Date: Friday, January 18th, 2013, 08:10
Category: iPhone, News

A growing network…that’s never a bad thing.

Per AppleInsider, U.S. carrier Sprint announced Thursday that its 4G LTE network, which offers faster connections to the iPhone 5 and Apple’s latest iPads, will expand to 28 new cities in the coming months.

The continuing deployment is part of Sprint’s Network Vision strategy, in which the company will consolidate multiple network technologies into one new, seamless network.

The goal, Sprint said, is to increase efficiency and enhance network coverage, call quality and data speeds for customers across the U.S.

The full list of markets that will gain access to Sprint 4G LTE follows:
Albany, Ga.
Anderson, S.C.
Bay City, Mich
Branson, Mo.
Bremerton/Silverdale, Wash.
Columbus, Ga.
Columbus, Miss.
Decatur, Ala.
Florence/Muscle Shoals, Ala.
Gadsden, Ala.
Gaffney, S.C.
Gettysburg, Pa.
Glasgow, Ky.
Homosassa Springs, Fla.
Hot Springs, Ark.
Lake City, Fla.
Lake Havasu City/Kingman, Ariz.
Midland, Mich.
Nacogdoches, Tex.
Opelousas/Eunice, La.
Oxford, Miss.
Paris, Tex.
Pittsfield, Mass.
Saginaw, Mich.
Spartanburg, S.C.
The Villages, Fla.
Waycross, Ga.
Winona, Minn.

During the pre-launch phase, customers of Sprint with compatible 4G LTE devices, like Apple’s iPhone 5, may begin to see coverage. Customers are welcome to use the network before it officially launches.

Sprint promises that customers on its LTE network will see enhanced call quality and better performance. 4G LTE allows for significantly improved data speeds, which will enhance browsing the Web, streaming music or video, and downloading applications from the App Store.

Sprint has already announced nearly 200 markets where Sprint 4G LTE is on its way, including Boston; Charlotte, N.C.; Indianapolis; Los Angeles; Memphis, Tenn.; Miami; Nashville, Tenn.; New Orleans; New York; Philadelphia; and Washington, D.C. The carrier announced plans to expand its LTE network in 100 new cities in September.

If you’ve had a chance to try the new Sprint network locations, let us know what you make of them in the comments.

Apple allies with Merchants Bank Co. to offer installment-based payment plans to Chinese customers

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Date: Thursday, January 17th, 2013, 09:06
Category: iPad, iPhone, iPod, News, retail

If you’re buying Apple equipment in China, there’s a payment plan for you.

Per Bloomberg, Apple on Thursday introduced a new option for Chinese buyers of iPhones and MacBooks, allowing them to spread the cost of purchases ranging from from 300 yuan (US$48) to 30,000 yuan (US$4,800) over as long as two years.

The new installment payment plans require a China Merchants Bank Co. credit card, with fees ranging from zero percent for a three-month installment plan to 8.5 percent for a 24-month plan. The payment structure likely represents Apple’s attempt at making its products, typically priced at a premium, more affordable for urban Chinese workers.

The article noted that Apple fell from fourth to sixth place in China’s smartphone market in the third quarter and now trails firms such as ZTE, Samsung, and Lenovo, whose smartphone offerings are more affordable than Apple’s iPhone.

Industry observers have long held that a cheaper iPhone would give Apple control over the growing Chinese market, and the financing move may allow Apple to retain its typical profit margins and brand image while widening its base of potential buyers in what will soon become the world’s largest market.

The iPhone 5, which hit the Chinese market last month, costs 5,288 yuan on Apple’s site, or about six weeks’ pay for the average urban worker. By comparison, handsets from competitors often cost less than 1,000 yuan.

Sales of other Apple products have demonstrated demand for the Cupertino company’s devices, as the iPad mini debuted to “insatiable demand” in China last December. Apple has increased its focus on the country accordingly, with chief executive Tim Cook visiting China twice in the past 10 months, most recently meeting with China Mobile, the world’s largest wireless carrier.

Stay tuned for additional details as they become available.

AT&T to enable FaceTime for tiered customers with compatible iOS devices

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Date: Thursday, January 17th, 2013, 08:00
Category: iOS, iPad, iPhone, News, Software

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Nothing like a little competition to get the wireless carriers to try to beat each other’s offerings.

That and the FCC yelling at you to do it sort of helps.

Per the company’s blog, AT&T announced on Wednesday it will enable FaceTime over cellular at no extra cost to any customers with a tiered data plan and compatible iOS device.

The announcement was made on the carrier’s website by Mark Collins, senior vice president of voice and data products. The change means that iPhone 4S customers with tiered plans will be able to make FaceTime calls over the AT&T network.

“We have already begun updating our systems and processes and expect to start rolling the update out to customers on an ongoing basis beginning in the next couple of weeks,” Collins wrote. “Customers do not need to do anything — the update will be applied automatically over the next few months.”

FaceTime over cellular will not come to older devices such as the iPhone 4 or second-generation iPad, even if they are running iOS 6. But that’s because the hardware does not support mobile FaceTime connections — a decision made by Apple, not AT&T.

Previously, AT&T had restricted FaceTime over cellular to customers who had switched to its Mobile Share plans, as well as those with an LTE device, such as the iPhone 5 or latest iPad, on a tiered plan.

AT&T came under fire for its initial decision, and the company was compelled to defend itself in a statement claiming its plan complied with Federal Communications Commissions that prohibit carriers from blocking services that compete with their own. The carrier argued that its decision was in compliance because AT&T does not offer its own competing preloaded video chat application.

AT&T began quietly activating FaceTime over cellular for more subscribers in November. At the time, some users who had grandfathered unlimited data plans said they too were able to use FaceTime. However, Wednesday’s announcement indicated the ability will only extend to customers who have tiered data plans.

If you get a chance to try FaceTime over AT&T’s cellular connections and have any feedback to offer about it, please let us know in the comments.

Rumor: Apple to release all-Retina iPad, MacBook Pro lineups in 2013

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Date: Wednesday, January 16th, 2013, 08:09
Category: Apple TV, Hardware, iPad, iPad mini, MacBook Pro, Rumor

Even though it’s a rumor, there’s got to be a nugget of truth in there somewhere.

Per AppleInsider, analyst Ming-Chi Kuo of KGI Securities has made his Apple hardware predictions for the upcoming year, and expects a bevy of new iOS and Mac product releases will help the iPhone maker address a wider swath of the market

Kuo, who has seen previous success in predicting future Apple products, says the company will introduce a number of new iOS devices in 2013, including an inexpensive iPhone 5, upgraded iPhone 5S, Retina display-toting second-gen iPad mini and a redesigned fifth-generation iPad, among others. He goes on to say that Apple will retire the non-Retina MacBook Pro line and replace it with an all-Retina lineup at a lower price.

Kuo is quick to note that none of the product forecasts are expected in the first quarter of 2013 and says “many” will be introduced in the second half of the year.

According to the analyst, Apple will release both an iPhone 5S with updated internals as well as an inexpensive version of the current iPhone 5 design with a thicker plastic chassis available in six colors. The iPhone 5S, which Kuo believes will launch sometime in June or July, will have largely the same aesthetic as the existing model, but will boast a built-in fingerprint sensor, improved camera and more powerful A7 SoC. A slightly revamped “new design” iPhone 5 is expected to go on sale as a less-expensive alternative to Apple’s flagship handset at around the same time, with the affordable price tag attributed to a plastic exterior that will be available in multiple colorways.

Kuo believes a new fifth-generation 9.7-inch iPad will launch with lighter frame and a more refined look, borrowing the narrow bezels seen on the iPad mini. In turn, the smaller tablet will move to generation two and get a Retina display that sports the same 2,048-by-1,536 pixel screen resolution as the existing full-size iPad. By using an identical resolution, app makers won’t have to make software changes to fit a new native format. The same thinking was used when the iPad mini was released with a resolution identical to the iPad 2.

As for Apple’s MacBook, the analyst sees an end of life for non-Retina MacBook Pros, which will be replaced by an all-Retina lineup that eschews optical drives. Pricing should be reduced to help move units. The MacBook Air will see little change besides a bump in internal specs as sizing down the high-resolution Retina display is seen as too steep a challenge at this time. Because the Air will not see a significant design change, the tweaked models are expected to arrive earlier in the year, with the all-Retina MacBook Pro line coming in quarter three.

In respect to the iPod product line, Kuo isn’t expecting much in the way of revolutionary changes. With the fifth-gen iPod touch released, Apple will likely introduce a cheaper variant of the current design without a camera and less built-in memory to reach a target price of US$199.

Finally, 2013 is expected to be the last year in which the Apple TV is considered a “hobby,” but Kuo doesn’t believe the company will introduce a full-fledged television set in the next 12 months. The existing media streamer is likely to morph into a serious business — possibly a full-fledged HDTV — in 2014, as Apple already has the infrastructure to support such a device with iTunes, the App Store and iCloud services. What the company lacks, however, is experience in the industry, especially concerning the establishment of a reliable supply chain. Kuo looks to the much-rumored “iTV” as a source of growth in the coming years.

Rumor: Apple to begin building preliminary “iPhone 5S” units this spring

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Date: Wednesday, January 16th, 2013, 08:24
Category: Hardware, iPhone, Rumor

If you were holding out for the next-generation iPhone, you can probably expect Apple to once again release something this summer.

Per AppleInsider, Apple will begin preliminary builds of the successor to the iPhone 5 in March, setting up for an earlier-than-expected debut in June or July, according to a new report.

Jefferies analyst Peter Misek said in a note to investors this week that two future iPhone prototypes are currently testing. At least one of these is said to be a so-called “iPhone 5S,” while the other could be Apple’s rumored low-cost iPhone.

Misek previously predicted in December that Apple will launch an incremental upgrade to the iPhone 5 this summer. He also believes the company’s next-generation iPhone, referred to as an “iPhone 6,” will sport a larger 4.8-inch display.

As word of the “iPhone 5S” production begins to spread, Misek expects there to be a slight slowing of demand for the iPhone 5.

He expects Apple to sell 44 million iPhones in the current March quarter — a number he noted is “still well above” recent concerns that shipments might be in the mid-30-million range.

Like some other analysts, Misek believes an apparent decline in iPhone 5 component orders from Apple is not related to significantly reduced demand for the popular handset. Instead, he believes the order cuts are related to three factors:
An assembly bottleneck that caused component inventories to rise in the holiday quarter.

Demand may be either in line or “slightly below optimistic expectations,” Misek believes.

While Misek expects Apple’s next iPhone to launch sooner than expected in the June-July timeframe, he also believes Apple is separately planning a low-cost iPhone that would be geared toward emerging markets like China. Such a device may already have been greenlit, he said.

“Similar to the iPad mini, we expect a concentrated low-cost iPhone rather than a ‘cheap’ one,” he said. “Likely specs: polycarbonate case with 4″ non-Retina display and no LTE.”

In his view, a less expensive iPhone would increase Apple’s smartphone market share, but would also decrease the company’s gross margins. He does not expect the rumored product to have much of an effect on the company’s earnings per share.

Stay tuned for additional details as they become available.

SquareTrade report reveals where most iPhones meet their demise

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Date: Tuesday, January 15th, 2013, 08:19
Category: iPhone, News

Well, at least now you know where not to take your iPhone.

Per a study published last October by third-party warranty company SquareTrade and The Mac Observer, most damage (51 percent) to an iPhone reportedly occurs in an owner’s home. Of the areas in the home, kitchens are the most likely location for an iPhone to die due to their usually hard floors, heavy traffic, and the abundance of foods and liquids that the device can encounter. It’s also likely that usage models play a role, as many iPhone owners like to listen to music or podcasts while cooking, or look up recipes on the fly.

The living room (18 percent), bathroom (16 percent), and driveway (10 percent) are the next most-likely locations for an accident while the bedroom at 8 percent rounds out the top five “danger zones.”

Some interesting statistics on exactly how iPhones die are also available. A surprisingly low 5 percent of iPhone owners have accidentally washed their iPhone in the washing machine, 9 percent have dropped it in a (hopefully clean) toilet, and 6 percent have left the phone on top of a car and then driven off.

When it comes to iPhones damaged by liquids, 43 percent of liquid damaged phones met their end due to water, 19 percent encountered soda, 12 percent drowned in a farewell pool of beer, and another 12 percent went out thanks to coffee or tea.

Finally, most accidents overall are the fault of the owner, and not a careless child, friend, or coworker. In all, 69 percent of accidents are caused by the owner.

If you have your own tale as to where and how you accidentally destroyed your iPhone, please let us know in the comments.