Apple posts $11.6 billion profit for Q2 2012, iOS devices drive strong earnings

Posted by:
Date: Wednesday, April 25th, 2012, 05:48
Category: Finance, News

applelogo_silver

It’s pretty clear at this point: Apple’s not in danger of going out of business.

Per Macworld, on Tuesday, Apple reported a net profit of US$11.6 billion on revenue of US$39.2 billion for the quarter ended March 31, 2012. Those are respective increases of 94 percent and 59 percent from the 2011 second quarter. Apple’s profit translates to earnings of US$12.30 per share, up from US$6.40 a share last year; analysts were looking for earnings of US$10.06 a share for the quarter.

All told, Apple tallied record March quarter sales for its iPad, iPhone, and Mac lineups. The company also saw record results for its retail stores during what chief financial officer Peter Oppenheimer called “the most amazing March quarter that Apple has ever had.”

It was a big quarter for Apple’s iPhone business as the company launched the third-generation tablet on March 16 and cut the entry level price to US$399 for the iPad 2. While those moves came late in the quarter, Apple sold 11.8 million tablets during the quarter, up from 151 percent in the year-ago period.

In terms of revenue, Apple recorded US$6.6 billion from iPad sales, up from US$2.8 billion in the year-ago quarter.

Following its March 16 launch in the U.S. and nine other countries, the third-generation iPad is now available in 40 countries around the world.

Apple executives also noted on Tuesday that the iPad is extending the company’s reach into new markets. According to Oppenheimer, Apple sold two iPads for every Mac bought by one of its K-12 education customers in the U.S.—and that was during a record March quarter for Mac sales. Oppenheimer also touted the iPad’s presence in the enterprise, specifically citing the U.S. Air Force’s deployment of “thousands” of iPads as technical flight bags.

“The iPad continues to open new doors to customers with whom Apple had no previous relationship,” Oppenheimer said.

iPhone numbers were also strong for Apple during the quarter. The company sold 35.1 million phones between January and March, an 88 percent jump from year-ago iPhone sales and a record for the March quarter. That outpaced the growth of the overall smartphone market, in which sales increased 42 percent year over year.

Revenue from the iPhone grew 85 percent from last year’s second quarter to US$22.69 billion.

In particular, Apple did brisk iPhone business in the Far East. Sales more than doubled in the Asia Pacific and Japan markets, according to Oppenheimer. In China, iPhone sales increased five times from last year, helped by the iPhone 4S’s release in that country in January and the addition of China Telecom as an iPhone carrier in March.

Apple ended the quarter with the iPhone 4S available in 100 countries with 230 carriers offering the smartphone.

Oppenheimer says iOS device sales—which include the iPod touch—totaled 50 million during the March quarter. Apple’s cumulative iOS device sales have grow to 365 million units.

The App Store now carries more than 600,000 apps, with a third of those specifically built for Apple’s iPad.

Mac sales also set a March quarter record. The company sold 4 million Macs, an increase of 7 percent from the year-ago quarter. The entire PC industry grew 2 percent during the March quarter, making it six full years that Apple’s Mac business has outpaced the demand for PCs overall.

Notebooks are still the driver for Apple’s Mac business. The 2.8 million portable Macs sold during the quarter represent 70 percent of Mac sales. Besides illustrating the importance of the MacBook Pro and MacBook Air to Apple’s fortunes, that figure could also indicate that Apple’s desktop lineup is getting long in the tooth. The iMac last saw an overhaul nearly a year ago while the Mac mini has remained unchanged since July 2011. The Mac Pro is approaching the second anniversary of its last update.

The Asia Pacific market saw the biggest jump in Mac unit sales, with a 29 percent rise from last year. Other global markets saw single-digit growth in Mac sales.

Apple’s Mac sales may be outpacing the industry growth rate, thanks in some part to the company’s brick-and-mortar retail efforts. Apple says it sold 826,000 Macs at its retail outlets in the second quarter—about 20 percent of all the Macs it sold during the three-month period. About half the Macs sold at Apple Stores were to customers new to the platform.

Speaking of Apple retail, Apple ended the quarter with 363 stores, after opening two new ones in Amsterdam and Houston. Retail revenue of US$4.4 billion for the quarter was up 38 percent from last year. It was the retail segment’s second-largest quarter of sales, behind only first quarter of 2012, which includes the holiday shopping season.

iPod sales continued their decline. Apple sold 7.7 million music players, a drop of 15 percent from the second quarter of 2011. iPod sales actually came in ahead of Apple’s expectations for the quarter, according to Oppenheimer, with Apple choosing to focus on the fact that the higher-priced iPod touch represents more than half of the iPods sold during the quarter. Even with its declining sales, the iPod remains the market leader among MP3 players, according to Apple’s figures.

The company was much more eager to talk about the growth of its iTunes Store, which also saw record revenue of US$1.9 billion during the quarter. That’s an increase of 35 percent from last year’s tally, with music, video, and app sales driving the growth.

Apple executives revealed a few other interesting details about the quarter during their briefing with analysts. The company ended the quarter with US$110 billion in cash—a situation that figures to change in July when Apple starts paying out a US$2.65 per share dividend to shareholders. Oppenheimer said the company would provide more information about that dividend program in July.

iCloud now has 125 million subscribers, after Apple launched the cloud-based service and MobileMe replacement last October. That subscriber base is up from 85 million at the end of the first quarter. It was only in February that Cook was telling investors that iCloud had topped the 100 million subscriber mark.

Apple continues to do a staggering amount of business in China. Cook told analysts the company recorded US$7.9 billion in sales from that country during the second quarter, three times the amount of revenue it took in during the year-ago period. The US$12.4 billion in revenue Apple has seen in China during the first six months of its 2012 fiscal year nearly matches its revenue from that country for all of 2011. Cook credited pent-up demand for the iPhone 4S and strong iPad 2 demand for much of that growth, which is also creating a halo effect for Mac sales in China.

Oppenheimer told analysts to expect revenue of US$34 billion and earnings per share of US$8.68 for the June quarter. That compares to revenue of US$28.57 billion and earnings of US$7.79 per share for the fiscal third quarter of 2011.

Apple’s forecasted numbers would be a sequential drop from the revenue and earnings the company just reported for its second quarter. Oppenheimer said the company is expecting a sequential decline in iPhone sales, as Apple had ramped up inventory to meet pent-up demand. The company was also able to satisfy demand for the new iPad, thanks to a significant supply of tablets. The lower entry price for the iPad 2 and a stronger U.S. dollar are also factors in Apple’s forecast.

Stay tuned for additional details as they become available.

Rumor: Next-gen iPhone to incorporate in-cell touch display

Posted by:
Date: Friday, April 20th, 2012, 06:26
Category: iPhone, Rumor

There’s got to be a nugget of truth in there somewhere.

Per the sometimes-reliable cats at DigiTimes, the next-gen iPhone may adopt “in-cell touch panels,” integrating the display and touch layers of the device’s screen into one component, according to DigiTimes’s Taiwan-based supply chain sources late Thursday night. The sources claim that display companies Sharp and Toshiba Mobile Display are likely to supply Apple with the parts.

Current iPhones use multiple separate layers to comprise the touch screen, including a transparent conductive layer that sits on top of the LCD display layers and registers touch input. The rumored in-cell touch displays combine these layers into one, resulting in an increase in touch response performance and a reduction in weight and thickness.

Unfortunately, in-cell touch displays are significantly more expensive to manufacture and have a lower yield rate than traditional displays with separate layers.

Apple currently sources iPhone displays from TPK Holdings and Wintek, neither of which have in-cell technology ready for production. TPK is working on implementing a “touch on lens” solution, an alternative to in-cell that can scale up to larger sized displays, but it will not be ready to begin production until later this year. Sharp and Toshiba Mobile Display have lines ready to go and are expected to begin production this quarter.

Stay tuned for additional details as they become available and please let us know what’s on your mind in the comments section.

Rumor: Next-gen iPhone’s glass could be replaced with Liquidmetal component

Posted by:
Date: Wednesday, April 18th, 2012, 11:21
Category: iPhone, Rumor

Your next iPhone could be part Robert Patrick from “Terminator 2: Judgement Day”.

Which, to be honest, was sort of the high point of Robert Patrick’s career.

Per Korea IT News, a new, questionable rumor from Korea claims that Apple’s next-generation iPhone will replace its glass back with the super-durable Liquidmetal alloy.

The claim stated that Apple’s sixth-generation iPhone will be made of zirconium, titanium, nickel, copper “and so forth.” It also said it will have a “surface smooth like liquid.”

Though the report includes references to a general “liquid metal,” the proper noun Liquidmetal refers to an amorphous metal that Apple purchased the exclusive rights to use in 2010. The company behind the material, Liquidmetal Technologies, revealed in March that it was paid US$20 million by Apple in that deal.

Casting some doubt on Wednesday’s report out of Korea, it goes on to say that the new iPhone is expected to debut at Apple’s Worldwide Developers Conference in San Francisco in June. Last year, Apple opted to hold off on unveiling the iPhone 4S until well after WWDC, and launched its fifth-generation handset in October.

This year, most rumors have suggested that Apple plans to hold to a similar timeframe for the launch of a sixth-generation iPhone. It has been rumored that Apple will unveil its next handset in the months of September or October.

While the WWDC launch reported by Korea IT News is questionable, claims of a metal back for the next iPhone are not new. As far back as last year, there were indications that Apple was working on an all-new iPhone design with a metal back akin to the iPad.

As for the potential use of Liquidmetal, the company that owns the material announced in March that it had begun shipping commercial parts to “several” unnamed customers. Apple’s Liquidmetal gives it the right to exclusively use the material in electronic products, though it is free to be used in other industries like defense contractors, sports equipment manufacturers and medical suppliers.

The first product Apple created out of Liquidmetal’s material was an iPhone SIM card ejector tool, but since then there has been no indication that any other products have been crafted from the Liquidmetal alloy.

Stay tuned for additional details as they become available.

Rumor: Apple internally seeding iPhone unit with 1GB of RAM, upgraded iPod touch device

Posted by:
Date: Monday, April 9th, 2012, 09:48
Category: Hardware, iPod, Rumor

With one iOS device update out of the way for 2012, Apple is working on updates to the iPhone and iPod touch. While these updates are expected, some additional iOS device details have leaked.

Per 9to5Mac, Apple has internally seeded a prototype next-generation iPhone with the iPhone 4 design. The actual next-generation iPhone is specifically said to not include the iPhone 4/4S design, but Apple is testing these new devices in older casings to throw off leaks. The purpose of the prototype iPhone that we heard about is to test a variation of the “A5X” chip in an iPhone. The A5X processor in the new iPad was specifically built to drive the new Retina Display, so that chip wouldn’t make much sense in an iPhone.

Instead, the iPhone prototypes feature a variation of the A5X’s S5L8945X architecture. Like the A5X-powered iPad, these new iPhone prototypes are packing 1GB of RAM. This prototype is labeled N96 internally, so it’s not certain if this internal codename will carry over to the actual next-generation iPhone. Again, this iPhone is an internal-only unit built for testing the performance of a new chip in an iPhone, not an actual phone that Apple will produce.

The iPod touch was an interesting product for Apple last year as it was the only iOS device to not receive internal nor cosmetic changes (save for a new white model). However, it looks like Apple is still interested in the iPod touch and wants a future for it. According to a file inside of an internal iOS 5.1 build, Apple is working on a fifth-generation iPod touch that is labeled iPod 5,1 internally. No specifics have been confirmed regarding the new iPod touch hardware, but the jump from 4,1 (the current internal iPod touch label) to 5,1 indicates major internal changes, at the very least. Perhaps Apple is finally moving to an A5 or A5X-like chip in the iPod touch. After all, the iPod touch is one of the most popular gaming devices on the market, and Apple’s dual-core iOS device processors offer top-of-the-line graphics performance.

Stay tuned for additional details as they become available.

AT&T using iTunes, telephone-based assistance for iPhone unlock process

Posted by:
Date: Monday, April 9th, 2012, 07:36
Category: iPhone, News

attlogo

Following up on Friday’s story, wireless carrier AT&T began allowing out-of-contract customers to unlock their iPhone for use on other carriers yesterday, and the unlock codes are applied to the device after restoring through iTunes.

Per AppleInsider, customers who were among the first to take advantage told the web site that after dialing 611 to speak with a customer service representative, they were met with a lengthy wait to speak with a technician.

Once that AT&T representative was on the phone, they asked a series of qualifying questions to ensure that the user was eligible for their iPhone to be unlocked.

The unlock process is detailed by AT&T in a PDF document shared by users who request the service. In it, the carrier offers a series of four steps that must be accomplished in order to complete the unlock.

The unlock code actually comes through Apple and is administered through iTunes. AT&T’s instructions tell users to open iTunes on their Mac or PC, connect their iPhone via USB, and backup and restore their handset. Restoring the iPhone will unlock it for use on other carriers.

AT&T’s instructions also include a link to a support document available on Apple’s website. There, users are instructed to reseat the SIM card in their iPhone, restore their handset, or contact their carrier if they experience issues with unlocking via iTunes.

If the authorized unlock is completed successfully, users are met with the message: “Unlock Complete. Congratulations, your iPhone has been unlocked. To set up and sync this iPhone, click Continue.”

If you’ve been part of the unlock process, please let us know how it went via the comments and thank you.

AT&T to begin unlocking off-contract iPhone units beginning April 8th

Posted by:
Date: Friday, April 6th, 2012, 11:31
Category: iPhone, News

attlogo

As much as AT&T may drive you crazy, you might like this.

Per Electronista and Engadget, AT&T will begin unlocking certain iPhones in the (very) near future. As of April 8, customers that are either out of contract or bought contract-free will have the option of derestricting the phone’s SIM slot much like the already-unlocked iPhones sold at Apple retail stores. The only other condition was to have a healthy account.

“Beginning Sunday, April 8, we will offer qualifying customers the ability to unlock their AT&T iPhones,” a spokesman said. “The only requirements are that a customer’s account must be in good standing, their device cannot be associated with a current and active term commitment on an AT&T customer account, and they need to have fulfilled their contract term, upgraded under one of our upgrade policies or paid an early termination fee.”

The initiative follows a number of complaints that led to Apple’s Tim Cook taking action and arranging for a handful of case-by-case unlocks. Other carriers worldwide have been offering after-sale iPhone unlocks, most notably in Canada, but AT&T until now has declined to do it, even for customers who paid the unsubsidized price.

More incentive exists for AT&T to unlock phones now that its spectrum refarming gives a real chance that its 3G network, and future 4G LTE network, will work properly with existing iPhones. A SIM unlock was previously only useful for those either willing to limit themselves to 2G data or who were traveling and wanted a much less expensive local SIM card instead of AT&T’s roaming plans.

If you go through the unlocking experience, please let us know how it went and stay tuned for additional details as they become available.

Five regional U.S. wireless carriers to offer iPhone units, service starting April 20th

Posted by:
Date: Wednesday, April 4th, 2012, 11:45
Category: iPhone, News

If you felt left out of the iPhone party, there’s a decent chance it’s coming to your area.

Per AppleInsider, a total of five regional U.S. carrier announced on Wednesday that they will begin selling Apple’s iPhone on April 20, as Alaska Communications, GCI, Appalachian Wireless and Cellcom join an earlier announcement from nTelos.

The iPhone 4S will become available to customers of five regional U.S. on April 20. It will be sold for US$50 cheaper than its traditional subsidized price at other carriers, starting at US$150 for the 16-gigabyte model, US$250 for 32 gigabytes, and US$350 for 64 gigabytes. The 8-gigabyte iPhone 4 will also be available for US$50.

And one of the carriers announced Wednesday, GCI, has a GSM network, which means it will also be able to offer Apple’s iPhone 3GS for free with a two-year contract.

Two of the carriers announced on Wednesday are based out of Alaska: Alaska Communications and GCI. The iPhone 4S will be available through Alaska Communications from its 14 retail stores, as well as the company’s website.

The carrier offers nationwide unlimited talk plans for US$90 with 2 gigabytes of data, while adding unlimited texting brings the monthly cost to US$101 and bumps the data cap up to 5 gigabytes. The subsidized iPhone pricing requires a two-year service contract.

Cellcom offers wireless service in parts of Michigan and Wisconsin, while Appalachian Wireless is based in Kentucky.

The announcement of four more wireless partners as an official carrier partner of Apple came on the same day that nTelos Wireless was also revealed. nTelos will also begin selling the iPhone 4S on April 20 to its more than 400,000 subscribers.

Apple began expanding availability of the iPhone to smaller, regional carriers last October when a deal with C Spire Wireless was announced. That carrier has about 900,000 customers.

Stay tuned for additional details as they become available.

nTelos regional wireless carrier to carry iPhone 4, 4S units

Posted by:
Date: Wednesday, April 4th, 2012, 07:33
Category: iPhone, News

nTelos Wireless, a Virginia-based wireless company with more than 400,000 subscribers, will become the fifth U.S. carrier to sell Apple’s iPhone when it launches on April 20.

Per AppleInsider, nTelos is the second regional carrier to partner with Apple, as the company began expanding to smaller U.S. carriers last October when it struck a deal with C Spire Wireless, which has about 900,000 customers.

The 8-gigabyte iPhone 4 will be available through nTelos for US$50, while the 16-gigabyte iPhone 4S can be had for US$150, 32 gigabytes for US$250, and 64 gigabytes for US$350. Those contract-subsidized prices are all US$50 cheaper than the offerings from the company’s competitors.

nTelos offers unlimited voice, text and data for one line for US$100 per month. Two lines can be purchased for US$140 per month, and additional lines after that cost US$50 each.

Availability of the iPhone to nTelos is possible because the carrier relies on a CDMA network, similar to the technology that powers Verizon and Sprint’s wireless networks.

As of Wednesday, the iPhone 4S is listed as “coming soon” on the nTelos Wireless website. Sales will officially begin at 7 a.m. on April 20 through nTelos retail stores, at the company’s website, or by calling 1-888-427-8858.

nTelos offers nationwide voice and data coverage for subscribers based in Virginia and West Virginia, along with portions of Maryland, North Carolina, Pennsylvania, Ohio, and Kentucky.

When the iPhone launches with nTelos, it will join AT&T, Verizon, Sprint and C Spire as one of five official U.S. carriers. The one glaring omission from the list of official Apple partners is T-Mobile, which is the fourth-largest wireless carrier in the U.S. with 34 million customers.

T-Mobile’s lack of access to the iPhone is a result of the company’s 3G service relying on the uncommon 1700MHz and 2100MHz bands, which are not supported by Apple’s smartphone. Users who operate an unlocked iPhone on T-Mobile’s network are restricted to much slower “EDGE” speeds.

Stay tuned for additional details as they become available.

Rumor: Fifth-generation iPhone could surface in June

Posted by:
Date: Tuesday, April 3rd, 2012, 07:46
Category: iPhone, Rumor

It’s the rumors that keep things interesting, except this time it’s coming from a stranger source than usual.

Per Macotakara, a recruiter for Foxconn’s growing Taiyuan plant may have inadvertently spoiled some of Appe’s 2012 iPhone plans. When interviewing with TV-Tokyo [past 6-minute mark], the staffer said the plant was explicitly hiring 18,000 workers “for the fifth-generation phone.” He expected the phone to come out in June.

As a recruiter and not a direct product overseer, the Foxconn worker’s knowledge of what would be happening isn’t certain. If accurate, he may only know enough for a recruiting drive and may not have the full picture. The phone may only be shipping or starting production in June, which could put a launch weeks or months later.

The interview could still be a sign that Apple won’t wait until fall for its next revision and that the October release of the iPhone 4S was a singular exception rather than starting a new pattern. Based on new iPad components, many now anticipate Apple jumping to LTE support. It might also get an A6 processor that wasn’t ready in time for the new iPad. Conflicting rumors have left debate open as to whether or not there will be a larger screen.

Stay tuned for additional details as they become available.

Rumor: Apple’s 2012 iMac to feature anti-reflective displays

Posted by:
Date: Monday, April 2nd, 2012, 06:25
Category: Hardware, iMac, Rumor

Because rumors make technology interesting.

Per DigiTimes, a completely redesigned family of Apple’s iMacs due for release later this year will not only arrive noticeably slimmer than existing models but may also be the first of the company’s desktops to feature anti-reflective displays.

The Taiwanese rumor publication has claimed that G-Tech is ramping up its monthly production capacity of cover glass from 1.8 million units to 3 million units in an effort to supply 25% or more of the cover glass for Apple’s new iPad.

The report curiously cites sources in adding that “G-Tech is also expected to supply AR (anti-reflective) glass solutions for Apple’s all-in-one (AIO) PCs with the new products to also serve as a growth driver for G-Tech.”

That would be a first for an Apple desktop, as the Mac maker has thus far only offered anti-reflective solutions as built-to-order options on its MacBook family of notebooks.

Apple’s last major redesign of the iMac arrived in October 2009 in the form of new 21.5- and 27-inch aluminum-clad models with an edge-to-edge glass design. Since then, the company has been working on a pair strikingly slimmer and lighter models that will more closely resemble the footprint of today’s most popular LED televisions according to sources close to the story.

Rumored for an introduction sometime in the second half of the year, the new iMac will help define a trend that will also see several of the company’s other core products adopt slimmer, more streamlined footprints throughout the year, including new MacBook Pros that resemble MacBook Airs and a thinner iPhone.

Separately, Apple has also been working to cut the fat from peripherals that ship with its industry-leading all-in-one desktop, with recent company filings revealing techniques for a new, slim-form keyboard with keys that could have a total travel range of as little as 0.2 millimeters.

Stay tuned for additional details as they become available.