Apple posts $28.27 billion revenue, $6.62 billion profit for Q4 2011, still disappoints some analysts

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Date: Wednesday, October 19th, 2011, 04:00
Category: Finance, News

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You can offer evidence of something pretty amazing, but you’ll never win the entirety of your audience over all the time.

In this vein, Apple released the financial results for its fiscal fourth quarter yesterday, reporting record sales of the Mac and iPad product lines as well as the company’s highest September quarter revenue and earnings ever, the news still failing to meet some analysts’ expectations.

Per Mac|Life, Apple announced its quarterly financial results for the fiscal 2011 fourth quarter which ended on September 24. Even without a new iPhone over the summer, the company still racked up quarterly revenue of US$28.27 billion and quarterly net profit of US$6.62 billion, or US$7.05 per diluted share. Last year at the same time, Apple had revenue of US$20.34 billion and net quarterly profit of US$4.31 billion, or US$4.64 per diluted share. The company’s gross margin was 40.3 percent compared to 36.9 percent in the same quarter a year ago, with international sales accounting for 63 percent of the quarterly revenue.

Even with this at hand, analysts on Wall Street looked at the report glumly, with Apple missing their own expectations of US$7.22 per share and revenue of US$29.5 billion. Per the Wall Street Journal, Apple hasn’t missed earnings forecasts since the second quarter of 2002, but others are saying sometime in 2004 instead. Whatever the case, the stock fell eight percent after hours but rebounded just a bit to close at US$398 per share.

While Apple has already sold more than four million iPhone 4S devices in the first weekend which won’t be accounted for until next quarter, the company still managed to move 17.07 million of the older handsets in the current quarter, a 21 percent year-over-year growth and certainly nothing to sneeze at. 11.2 million iPads flew out the door, marking a 166 percent increase from the same quarter last year, with 4.89 million Macs also finding homes in the quarter, a 26 percent unit increase.

“We are thrilled with the very strong finish of an outstanding fiscal 2011, growing annual revenue to US$108 billion and growing earnings to US$26 billion,” said Tim Cook, Apple’s CEO. “Customer response to iPhone 4S has been fantastic, we have strong momentum going into the holiday season, and we remain really enthusiastic about our product pipeline.”

One product category that took a hit was the iPod, which sold only 6.62 million units during the quarter, marking a 27 percent decline from the same quarter last year — but certainly not bad for a lineup that’s now a decade old, and the iPod continues to hold more than 70 percent market share.

“We are extremely pleased with our record September quarter revenue and earnings and with cash generation of US$5.4 billion during the quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the first fiscal quarter of 2012, which will span 14 weeks rather than 13, we expect revenue of about US$37 billion and we expect diluted earnings per share of about US$9.30.”

As usual, Apple held a conference call to provide further highlights and field questions from analysts and investors, with CEO Tim Cook noting that it marks the first since the passing of co-founder Steve Jobs. “The world has lost a visionary and an amazing human being,” Cook stated. “He was an amazing leader and mentor. His spirit will forever be the foundation of Apple, and we are dedicated to continuing the amazing work that he loved so much.”

Cook then got down to business by turning things over to CFO Peter Oppenheimer, who repeated most of the details from Apple’s earlier press release before throwing out some additional numbers. These included iTunes Store revenue of US$1.5 billion, 180 million iBooks sold, US$11 billion in revenue from iPhone handsets and accessories, and six million downloads of OS X Lion in the quarter.

Asia-Pacific growth doubled year over year, which the company was expecting to fall when it became clear in June that no new iPhone was on the horizon. The handset is now available on 230 carriers in 105 countries, with Consumer Reports listing the device with its highest customer satisfaction rating for the sixth consecutive time. 93 percent of Fortune 500 companies are now either deploying or testing the iPhone, up from 91 percent last year.

The App Store is also flying high, with 22 more countries enlisted during the quarter for a total of 123. Retail stores are also enjoying “very strong” year-over-year growth, particularly for Mac and iPad sales, which enjoyed their best quarter ever — which no doubt helped lessen the blow from the iPhone 4S being unveiled in fiscal Q1 2012 instead.

Last but not least, during the closing question and answer session, Cook proclaimed confidence that Apple would have record sales for the next quarter, which includes the all-important holiday season. That quarter will also bring the iPhone 4S to another 22 countries at month’s end, with even more coming by year’s end.

iFixit posts 7th generation iPod nano teardown

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Date: Thursday, October 6th, 2011, 10:18
Category: iPod, News

It’s the new components that make the next generation of a device interesting.

Once again, the cool cats at iFixit have pulled apart a new Apple gadget, the company releasing a teardown of the new 7th generation iPod nano.

The new nano, which looks exactly like its predecessor, sports a 1.54-inch multi-touch display, a 240 x 240 pixel resolution, built-in accelerometer and stock Nike+ package.

The device also features no screws, so if you want to take yours apart, you’ll have to use a heat gun to open up the casing.

The new iPod nano is available now with prices starting at US$129.

Live Blog: Apple’s “Let’s Talk iPhone” media event

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Date: Tuesday, October 4th, 2011, 09:46
Category: iPad, iPhone, iPod, News, Software

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Ok, here are the touch points so far, as noted via the cool cats at Mac|Life:

- iOS 5 will be released on October 12th and continue to be free.

- iOS 5 will function on the iPhone 3GS, 4, iPad, iPad 2, and the two recent generation iPod touches.

- Contacts, calendar items and events will all be backed up with iCloud.

- Users will be able to turn location finding on and find friends with a “Find My Friend” feature.

- The iPod app is gone in iOS 5 and has been replaced with the iPod touch’s Music app icon.

- iCloud will debut on October 25th.

- Apple has apparently announced an updated iPod nano with FM radio, pedometer and larger buttons.

- The updated iPod nano will be available at the following price points: 8GB US$129 and 16GB for US$149.

- The updated iPod touch will be available at the following price points: 8GB for US$199, 32GB for US$299 and 64GB for US$399.

- The iPhone 5 will be available in both black and white upon release.

- The iPhone 4S will be powered by the A5 processor.

- The iPhone 4S will feature dual-core graphics, be 2x faster and function as a much better gaming device.

- Apple is citing eight hours of 3G talk time with the iPhone 4S.

- 50 hours of listening to your favorite tunes on the new battery…

- A new antenna system will switch between transmitting and receiving functions, Apple citing this as more reliable than the current iPhone 4 antenna.

- Apple is citing 2X faster downloads with the iPhone 4S.

- The iPhone 4S will function on both GSM and CDMA networks.

- A new 8 megapixel camera will offer a 3264 x 2448 resolution (Apple is stating that this is 60% more pixels than the current camera resolution).

- Camera: f/2.4 aperture, 30% more sharpness due in part to five element lenses.

- Better white balance and facial detection on the iPhone 4S camera.

- The A5 processor allows for speedier shots, Apple citing that the camera can go from the first shot to the next shot in half of a second.

- The new camera will feature 1080p HD recording, temporal noise reduction and video image stabilization.

- AirPlay mirroring will allow your iOS’s apps to be mirrored to a larger monitor via your AppleTV.

- The iPhone 4S looks exactly the same as the current iPhone 4.

- A “Siri” feature will allow you to give spoken commands (such as “What will the weather be like today?” to the device).

- Siri will allow you to reply to texts while the device is in a pocket and will allow for a reply text with a Bluetooth headset.

- Siri’s interface is both onscreen as well as audio, the feature being hardware-dependent and running on the iPhone 4S only.

- Siri will apparently read a text message to you and ask you questions as to how you’d like to reply.

- Siri can do dictations for emails too, the app placing a microphone next to the space bar in the keyboard. The app will start as a beta in the U.S., U.K., Australia, French and German with more languages and services coming.

- The iPhone 4S apparently features an identical screen size to the current iPhone 4.

- And now, your long-awaited pricing and capacities for the iPhone 4S: 16GB for US$199, 32GB for US$299 and 64 GB for US$399.

- The iPhone 3G can now be purchased new for US$49.

- Sprint has now been added to the list of iPhone wireless carriers along with AT&T and Verizon.

- Pre-orders for the iPhone 4S begin Friday, October 7th.

- The iPhone 4S will be released on Friday, October 14th.

- The iPhone 4S will be available in 22 additional countries on October 28th and reach 70 countries by the end of 2011.

That’s all for now and let us know what you think via the comments.

Rumor: Apple to discontinue iPod Classic, Shuffle models this year

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Date: Wednesday, September 28th, 2011, 06:03
Category: iPod, Rumor

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The iPod classic and Shuffle models may not be long for this world.

Per The Unofficial Apple Weblog, Apple will streamline its iPod range by removing the iPod classic and iPod shuffle from its physical and online stores.

The source is apparently not an analyst, who preferred to remain anonymous, stated that the tip isn’t apparently that new.

The iPod classic still uses a traditional, spinning-disc hard drive and while Apple is making a conscious shift to flash memory it is beginning to look somewhat outdated. The iPod shuffle is at the lowest end of the iPod range and once it is discontinued, the iPod nano will take its place.

The iPod will see its 10th anniversary this October, which could make this a good time to put it to rest. Besides, iPods only account for eight percent of Apple’s total sales these days.

Stay tuned for additional details as they become available.

Recently published Apple patents describe steps towards driverless printing for Mac OS X, iOS devices

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Date: Tuesday, August 16th, 2011, 03:27
Category: Patents, Rumor, Software

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In a pair of recent filings, Apple proposed methods that would eliminate the necessity of printer drivers in order to streamline the printing process for users of its Mac OS X and iOS devices.

The first of the two patent applications, entitled “Walk-Up Printing Without Drivers,” reveals methods of circumventing the printer driver requirement when such a driver is absent from Apple mobile devices like the iPhone, iPad and iPod touch, as well as Macs.

According to ConceivablyTech, Apple describes a new printing process for such mobile computing devices that would allow them to wirelessly detect a printer and determine whether a printer driver is installed.

The user would then be able to continue the printing job even without a driver by employing a series of APIs based on a discovery protocol such as Bonjour, an Internet Printing Protocol (IPP) and the PostScript Printer Description (PPD) file, which is used to detect the printer.

In the event that the device still fails to pair up with the printer, the user would have a third way of completing the print job — by sending the documents to the cloud and using cloud-specific printing technology to communicate with the printer.

The second patent, filed on the same day as the first one, September 14, 2010 according to the United States Patent and Trademark Office and entitled “Data Formats to Support Driverless Printing,” shows a different driverless and wireless printing concept also explored by Apple.

The company suggests a new way for mobile devices to bypass the printer driver requirement by storing a specific data structure that would be able to specify the following printing characteristics when detecting a printer: “resolutions, color spaces, bit depths, input slots, face-up/face-down input orientation, output bins, face-up/face-down output orientation, duplex printing support, media types, copy support, supported finishings, and print quality.”

A new “URF-supported key,” part of discovery and transport protocols, is also mentioned by the second patent. Its purpose would be to offer a “standardized set of capabilities that are supported by a printer” that would let the user “generate printer data for any type of printer” without actually storing any printer-specific details on the computing device in question.

The new wireless and driverless technologies described by these two new patents would complement Apple’s existing AirPrint capabilities for iOS devices and could lead to a future driver-free printing experience for most Mac OS X computers.

Apple has high hopes for AirPrint, but has run into a few snags in the transition to driverless printing. Late last year, one rumor suggested that Apple had run into intellectual property issues with the AirPrint architecture, a problem that could potentially be alleviated should the U.S. Patent & Trademark Office grant the above patents to Apple.

Meanwhile, printer makers such as HP and EFI have been steadily adding support for the feature to their printer offerings.

If you have any thoughts on this, let us know what’s on your mind in the comments.

Rumor: Apple to hold iPod media event on September 7

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Date: Friday, August 12th, 2011, 03:17
Category: iPod, Rumor

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An unverified report claims Apple will hold its annual iPod media event on September 7th and could possibly announce the iPhone 5 later that month September or in early October.

Per Japanese Mac site Kodawarisan, Apple will release a new line of iPods at the event. The rumor also claimed the fifth-generation iPhone is “likely to be announced” in late September or Early October. Though the publication has been an accurate source for Apple predictions in the past, Friday’s report remains unconfirmed.

Last year, the iPod maker held the event on September 1st, releasing a new iPod touch, new multi-touch iPod nano, iPod shuffle and the US$99 cloud-centric update to the Apple TV.

In May, photos of a part allegedly for the seventh-generation iPod nano have fueled rumors that Apple may add a 1.3-megapixel camera to the device. The supposed leak came on the heels of a separate unverified photo purportedly of an iPod nano frame that emerged in April.

Stay tuned for additional details as they become available.

Walmart to close online MP3 store later this month

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Date: Wednesday, August 10th, 2011, 04:11
Category: News, retail, Software

Retail giant Walmart revealed on Tuesday that it will close its MP3 store later this month, even as Apple’s iTunes continues to dominate the digital music industry.

The company declined to provide further details regarding the move, saying only that it was a “business decision,” as noted by the Associated Press. Walmart will close the store on August 29, though customers who have already purchased music through the site will still be able to access their music there.

Walmart opened its MP3 store in 2003 in direct competition with Apple’s iTunes. The digital storefront failed to gain much traction, however, with music sales on iTunes eventually passing Walmart’s combined physical and digital sales in 2008. Apple held 26.7% of all music sales by 2009, more than double Walmart’s 12.54% share.

As of late last year, Apple continued to dominate the digital music market with a 66% share, while second-place Amazon had climbed to 13.3%. Walmart’s share stood at less than 1% at the time.

NPD analyst Marshall Cohen characterized the retail industry as being in flux, noting that Walmart may be better off focusing on what it does best, rather than continuing to deliver a sub-par experience to consumers.

“It is very easy to become antiquated very quickly in the entertainment industry,” he said. “If you are losing ground, and they probably were losing ground more rapidly year after year, it’s probably better to regroup and retool.”

Walmart’s failure with its digital music store has been partially attributed to its choice of format. The company bet on Windows Media Audio, but eventually found itself competing with Microsoft’s own Zune Marketplace while being blocked from Apple’s iPod.

Rumor: iPhone 5 to launch in ‘early to mid-September’

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Date: Monday, July 25th, 2011, 07:58
Category: iPhone, Rumor

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The cool cats at Boy Genius Report are citing that AT&T is beginning preparations for an expected “early to mid-September” launch of the next-generation iPhone, in line with launch rumors and expectations and other reports of Apple beefing up its retail store staffing over a similar timeframe.

BGR has learned that AT&T has begun communicating launch plans internally for Apple’s next-generation iPhone 5 handset, informing employees across the company, and those who work in retail locations, to finish any sort of employee training as soon as possible. AT&T is asking managers to finish training in order to have employees available for the influx of foot traffic expected in September, a proven source has stated.

Apple has been preparing to increase staffing at its retail stores in the United States and United Kingdom, and rumors have suggested that Apple will use its traditional fall iPod media event to introduce the next-generation iPhone this year. That event has typically taken place in early September, although some reports have pushed that date up into late August this year ahead of a September launch for the device. Apple has announced that iOS 5 will debut this “fall”, and that software launch will undoubtedly occur right around the release of the next-generation hardware.

Stay tuned for additional details as they become available.

Rumor: White iPod touch en route for 2011, minor spec updates expected

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Date: Friday, July 22nd, 2011, 07:51
Category: iPod Touch, Rumor

An update next month to Apple’s flagship digital media player may outfit the device in an additional color but may otherwise represent a rather modest refresh when compared to years past according to AppleInsider.

The iPod, which struck a resurgence that helped place Apple back on the map in 2001, may for the first time take a back seat to the company’s more lucrative and influential devices — such as the iPhone and iPad — when the electronics maker unveils its holiday lineup of iOS devices sometime between mid-August and mid-September.

For years the iPod lifted Apple as its bread-and-butter product but now accounts for a paltry 5% of the company’s revenue, according to data released as part of its fiscal third quarter earnings report this week. The majority of that revenue now comes from the higher-ASP iPod touch, which accounted for more than half of the 7.54 million iPods shipped during the quarter.

Adding a bit more color to the matter are a series of recent industry checks by Concord Securities analyst Ming-Chi Kuo, the iPod touch is the only one of Apple’s four iPod product lines that continues to show any semblance of unit growth heading into the second half of the year.

Looking into the current third calendar quarter, Kuo said checks indicate Apple has placed orders for white iPod touch models that are expected to go into mass production sometime in late August, but he added that the build plans for those models reflect few, if any, distinguishable changes from the existing black models introduced last fall.

“It means no spec update of iPod touch this year,” he said.

And while such claims may or may not pan out, it’s worth noting that the same round of checks by the analyst revealed earlier this week that Apple’s production roadmap for its legacy white MacBook appeared to drop off in August, and that no future updates were expected. Within days of those checks, Apple formally discontinued sales of the white MacBook to consumers, relegating the notebook to an education-only product.

Asked why he believes his checks into this year’s iPod touch update will similarly prove accurate, Kuo said it’s all about a priority shift towards the market-leading iPhone and the iPad, which now combine for a whopping 68% of Apple’s sales. Unlike years past when Apple updated the iPhone in the summer, met initial demand, and only then began sharing components with the iPod touch in the fall, this year’s iPhone refresh has been pushed inline with that of the iPod touch.

“[The] iPhone and iPad have higher priority to get shared components of iOS devices when the supply chain is tight (especially after the Japan quake),” Kuo said, suggesting that Apple has such high expectations for the fifth-generation iPhone that it may not be confident it could secure enough components to introduce a similarly-equipped iPod touch around the same time.

For perspective, Apple shipped at least 33 million iOS devices last quarter, struggling to build enough iPads the entire stretch. That quarter included 20 million iPhones, and it wasn’t a new iPhone quarter. The iPhone 4 actually celebrated its first birthday near the end of the 3-month span.

Apple has proven that it can beat at a pace that is sometimes beyond the scalability of its suppliers, and is now pouring billions into those companies to make sure they catch up so it doesn’t have to slow down. In addition to mass production of the iPhone 5 in September, Kuo says Apple has an ambitious but, for those reasons, tentative plan that could see a new iPad enter production only a few months later.

Although the “plan might change,” the analyst’s current checks have a new iPad hitting the manufacturing lines sometime in the fourth quarter. He says, however, that it’s unclear when Apple plans to introduce it to market.

“Component suppliers will start to ship for next iPad in mid 3Q11 and MP date will be in 4Q,” he wrote in a communication to AppleInsider. “The demand forecast is strong and Apple prefers to allocate shared components to iPhone and iPad.” Kuo added that TPK currently acts as the sole source for touch-screens for white iPads but that Wintek will start sharing those duties in September.

The analyst’s checks aside, there’s been little to no evidence thus far to suggest a material update to the iPod touch is near production. No reports have surfaced with talk of parts or supplier contracts for a new model, and even Apple’s own iOS betas are already dropping hints at two versions of an iPad 3 but haven’t turned up mention of a fifth-gen iPod touch. Instead, the last few releases included references (above) to an unreleased “iPod4,2,” which identifies it as a player based on the existing, fourth-gen iPod touch architecture.

Should Apple indeed forgo an architectural revamp of the iPod this year, the advent of a white model could serve to re-energize sales in a move similar to the one that played out a few months ago with the arrival of the white iPhone 4.

Stay tuned for additional details as they become available.

Leaked photo shows 7th-generation iPod nano with 1.3 megapixel camera, no attachment clip

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Date: Wednesday, May 11th, 2011, 07:39
Category: iPod, iPod Nano, Pictures

If it’s not the rumors that keep technology interesting, it’s the leaked product photos.

Per tw.apple.pro, additional evidence has surfaced showing that the seventh generation iPod nano will retain its same small form factor and multi-touch screen, but add a camera to the rear side of the diminutive device and strangely ditch the built-in clip.

A picture claimed to show the alleged seventh-generation iPod nano appeared on Monday on the website, the accompanying report claiming that the camera is a low-resolution 1.3 megapixel lens.

Crediting a source named “Ray” from California, the site suggests that the next iPod nano will not include a clip as the current model does. Placing a clip on the back of the device would cover the camera lens on the supposed device.

Tuesday’s picture is not the first report to suggest that Apple could add a camera to its multi-touch iPod nano. In early April, an unverified photo showed an alleged seventh-generation iPod nano frame with space in the back for a rear-facing camera.

The Taiwanese Apple blog has correctly leaked each of the previous six generations of the iPod nano. Last year, they leaked photos of a tiny touchscreen that went on to become the multi-touch display for the sixth-generation iPod nano, released in 2010.

The larger fifth-generation iPod nano, released in 2009, did have a camera, along with the classic-style iPod click wheel. But the camera was ditched in the 2010 model, allowing Apple to create an even smaller device driven by a multi-touch display.

Adding a camera to the iPod nano once again could appease some critics who were disappointed that the feature was removed last year. But removing a clip from the rear of the device would also be a detriment, as the small size and inclusion of an integrated Nike+ pedometer has made the sixth-generation iPod nano a strong choice for use at the gym.

Stay tuned for additional details as they become available.