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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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.

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

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

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

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

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

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

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

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

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

Stay tuned for additional details as they become available.

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.

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.

Rumor: Next-gen iPhone to feature quad-core processor

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Date: Friday, July 6th, 2012, 07:14
Category: Hardware, iPhone, Rumor

You have to admit: a quad-core ARM processor in your new iPhone would qualify as nifty.

Per a Thursday report from DigiTimes, Apple’s next-gen could feature a quad-core processor according to industry sources. Other details on the rumored processor, including clock speed or graphics processing capabilities, were not presented.

Last year’s iPhone 4S features a custom dual-core processor clocked at 800 megahertz, dubbed by Apple the “A5.” That chip was first introduced months earlier in the iPad 2, where it ran slightly faster at 1 gigahertz thanks to a larger form factor with a bigger battery.

With the third-generation iPad launched this year, Apple didn’t unveil a true next-generation chip, choosing instead to name the processor the “A5X,” suggesting an evolutionary upgrade over its predecessor. That CPU is based around Samsung’s 45-nanometer low-power architecture, also found in the A5 CPU in the iPhone 4S and iPad 2.

The main change with the A5X was an updated integrated graphics processor. While the CPU remained dual core, the GPU was upgraded to quad core in order to push the 3.1 million pixels found on the tablet’s high-resolution Retina display.

If Apple does build a quad-core ARM CPU for its next iPhone, the upgrade could presumably be significant enough to earn the chip the “A6” distinction. DigiTimes said Apple’s expected introduction of a quad-core iPhone will help “heat up” competition with other quad-core smartphones.

Samsung, HTC, LG and Meizu all launched quad-core smartphones in the second quarter of 2012, most notably Samsung’s Galaxy S III, the latest flagship handset for Google’s Android mobile operating system. However, the quad-core Galaxy S III has thus far only been available in international markets, while the 4G LTE-capable model released in the U.S. features a dual-core Snapdragon S4 processor. Next week, Samsung will launch a quad-core LTE Galaxy S III, but only in Korea.

More quad-core smartphones are expected to be introduced in the second half of 2012, thanks to volume production of chips from Qualcomm.

Stay tuned for additional details as they become available.

Google releases Google Chrome, Google Drive for iOS

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Date: Thursday, June 28th, 2012, 14:05
Category: iOS, iPad, iPhone, iPod, iPod Touch, News, Software


It had to happen sometime.

Per Mac|Life, on Thursday, Google announced the release of both its Google Chrome and Google Drive apps for iOS on Thursday. Announced during the company’s day two keynote at Google I/O, the pair of free universal apps have been long awaited from iOS users.

Google Drive version 1.0.1 is already available from the App Store, offering quick and easy access to documents, photos and videos stored in your 5GB of free cloud storage. Users can make files available offline for access when an internet connection isn’t available, and Drive offers easy file sharing as well.

The app also allows searching within any kind of file synced across your desktop and other devices, and files stored on Drive can be opened from other iOS apps with just a tap.

Google’s Chrome web browser is also making the leap to iOS on Thursday, allowing Mac, PC, Chrome OS and Android users to now sync their bookmarks, tabs and other data seamlessly to iOS devices as well.

Google Drive and Google Chrome require an iPhone, iPod touch or iPad running iOS 5.0 or later to install and run.

If you’ve tried the new apps and have any feedback, please let us know in the comments.

Rumor: Facebook revamping iOS app for July, aiming for significant speed/performance boosts

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Date: Thursday, June 28th, 2012, 06:26
Category: News, Rumor, Software

You might not be proud to admit how much you use it, but it could prove useful.

Per the New York Times, Facebook is working on a new application for iOS that has been completely rebuilt to address its current, “painfully slow” performance.

Two unnamed engineers working on the project shared the details of the updated application with Nick Bilton of The New York Times. He reported on Wednesday that the rebuilt application will focus on speed and performance.

“One of the Facebook engineers said the new application has been built primarily using Objective-C, the programming language used to build applications for iOS,” Bilton wrote. “Many of the components of the current version of the Facebook app are built using HTML5, a Web-based programming language.”

Bilton tested the unreleased iPhone application and said it delivers “blazing fast” performance. He said the application is being tested by developers and should be released this summer, indicating that it is expected to launch “next month.”

Though it will be rewritten, the application “looks exactly like the old one,” he said. All of the changes have been made behind the scenes to improve performance.

The Facebook application has been available on iPhone for years, but the social networking site released its official iPad application last fall. The iOS software is universal, meaning it has built-in support for both the iPhone and the iPad.

Facebook will also play a major role in the release of iOS 6 this fall. With iOS 6, Apple will add system-wide Facebook integration, allowing users to log in to their account in the iOS Settings application in order to quickly post to their Facebook account and share music, applications and photos with their friends.

Stay tuned for additional details as they become available.

Apple releases iOS 6 beta 2 to developer community

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Date: Tuesday, June 26th, 2012, 06:38
Category: iOS, iPad, iPhone, iTunes, News, Software

It’s not the most amazing update in the world, but it moves things a bit closer to iOS 6’s release date.

Per AppleInsider, Apple on Monday issued its second beta of iOS 6 for developer testing, including a pair of fixes related to touchscreen keyboard performance.

Developers began receiving word that an update was available from “AppleInternal” on Monday afternoon. The “operating system 6.0” update is a 322-megabyte download for iPhone 4S users.

People familiar with iOS 6 beta 2 said it is identified as build “10A5338d.” When updating to the new software version in the Settings application, the icon with gears is animated and actually moves.

The release notes that accompany the update reportedly indicate that Apple fixed an issue where key clicking sounds could be skipped during fast typing. Apple also indicated it addressed an issue in which the keyboard would be wrongly positioned when switching from landscape to portrait orientation.

Apple also reportedly fixed an issue where the iOS SpringBoard may crash during a phone call if the screen would fade to black when using a speakerphone or headphones. It also addressed a crash that would occur if a new iCloud account was created during initial setup of the iOS device.

The latest iOS 6 beta also adds the podcasts section back into the iTunes application. That was missing from the first beta, and there have been rumors that Apple plans to introduce a standalone podcast application when iOS 6 officially launches this fall.

iOS 6 beta 2 is compatible with the third-generation iPad, iPad 2, iPhone 4S, iPhone 4, iPhone 3GS, and fourth-generation iPod touch.

Also released on Monday were Xcode 4.5 Developer Preview 2, as well as a second beta of the next software update for the Apple TV set-top box.

iOS 6 was formally announced earlier this 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.

If you’ve gotten a chance to tinker with the new beta, please let us know what you think in the comments.