Apple reports $24.67 billion in revenue, $5.99 billion profit for second quarter

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Date: Wednesday, April 20th, 2011, 15:05
Category: Finance, News

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As irked as you may be with Apple from time to time, there’s no doubting this: the company makes a profit and is around for the long haul.

Per Macworld, Apple announced the results of its second fiscal quarter, citing sales of US$24.67 billion and a net profit of US$5.99 billion, according to figures announced by the company Wednesday.

The company’s quarterly revenue, a record figure for the second quarter, beat year-ago sales by 83%. Profits also set a record for the quarter, and improved 95% over the US$3.07 billion in profit the company tallied in the 2010 second quarter.

Apple earned US$6.40 per share, beating last year’s second-quarter earnings of US$3.33 per share by 92%. Apple’s performance also blew away analyst estimates. Analysts were looking for the company to report US$23.34 billion in revenue and earnings of US$5.36 per share for the quarter.

During the conference call, Apple stated that it had sold 18.65 million iPhones during the quarter, which ended March 26. This figure represents an increase of 113% from the 8.75 million phones Apple sold over the same period last year. The company recorded recognized revenue of US$12.3 billion in the just-completed quarter, an increase of 126%.

All told, Apple ended its fiscal second quarter with the iPhone available in 90 countries through 186 carriers, compared to 185 carriers in 90 countries at the end of the first quarter; Apple Chief Financial Office Peter Oppenheimer noted that there had been some carrier contraction during the last three months that offset the addition of new partners such as Verizon in the U.S., SK Telecom in South Korea, and Saudi Telecom in Saudi Arabia.

Apple sold 3.76 million Macs during the second quarter, an increase of 28% over the 2.9 million Macs sold during the year-ago period. That set a record for Mac sales during the March quarter, Oppenheimer said. In particular, Mac sales compared favorably with the overall PC market, which contracted at a rate of 3% during the quarter, according to figures from IDC. That marks the twentieth consecutive quarter that Apple has outgrown the PC market, although sales numbers were below those posted by Apple for the last two quarters.

Notebooks continue to be the big driver for Mac sales, with the 2.7 million portables making up 73% of the Macs sold during the quarter. In addition to the February revamp of the MacBook Pro line, Apple also reaped the benefits of last year’s MacBook Air updates. The 1 million desktops sold were only more than during one of the last five quarters.

Apple also made notable gains internationally with Macs, seeing 76% growth in the Asia Pacific region on a year-over-year basis.

The iPad 2 shipped at the end of the quarter, on March 11 in the U.S. and on March 25 in 25 additional countries, which helped spur sales of Apple’s tablet. All told, Apple sold 4.69 million iPads during the quarter, though it didn’t break down those sales between the iPad 2 and the original model. In total, Apple has sold 19.48 million iPads since the product was released in April 2010.

Unfortunately, iPod sales continued their decline, though Apple says that the product line’s performance was ahead of expectations. The company sold 9.02 million iPods during the quarter, a drop of 17% from last year’s second-quarter figures. More than half of the iPods sold during the quarter were the iPod touch, according to Apple’s figures.

Despite that decline, Oppenheimer said that the total iPod sales were ahead of Apple’s expectation, and that the iPod remains the top-selling MP3 player in most of the countries where that data is tracked, and continues to hold onto its market-leading position in the U.S.

Apple found a silver lining in the performance of its iTunes online business, however. That segment tallied US$1.1 billion in revenues, its best quarter ever, according to Oppenheimer.

With Apple’s brick-and-mortar retail outlets approaching their 10th anniversary next month, Oppenheimer noted that the retail chains should see their 1 billionth visitor in a matter of days. During the second quarter, 71.1 million people visited the app store, up from 47 million visitors in the 2010 second quarter.

Revenue from the retail stores grew 90% to US$3.19 billion. Apple says it sold 797,000 Macs through its retail outlets, an increase of 32% from last year. About half of the Macs sold at the Apple Store were to newly minted Mac users.

Apple still plans to open 40 new stores during the 2011 fiscal year, with two-thirds of those outlets opening outside of the U.S. That includes a fifth Apple Store in China.

For the third quarter ending in June, Apple expects revenue of about US$23 billion and earnings per share of US$5.03. That compares to US$15.7 billion in revenue and earnings of US$3.51 a share for the third quarter of 2010. Prior to Wednesday’s call, analysts were looking for sales of US$23.8 billion and earnings of US$5.25 per share for the June quarter.

Rumor: Apple to include camera in 7th-generation iPod nano

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Date: Monday, April 4th, 2011, 05:44
Category: iPod, photos, Rumor

A recently leaked photo purportedly shows Apple’s seventh-generation iPod nano with a camera hole, though the report remains unverified.

Per Apple.pro (via Google Translate), a leaked of the alleged next-generation iPod nano was posted on Saturday. However, the author of the report was quick to note that he was unable to verify the authenticity of the image.

The author also hedged the report by asserting that the image was posted mainly for the fun of speculation, especially given that the time difference meant it was still April Fools’ Day in America. As such, no outlets have been able to effectively vouch for the veracity of the rumor and is including it here for discussion purposes only.

The report does, however, remind readers that the website has correctly leaked each of the previous six generations of the iPod nano in past years. The author speculates that Apple could follow the same pattern as with the last design of the iPod nano, where a camera was added during the update from the fourth-generation iPod nano to the fifth-generation without major changes to the form factor.

The addition of a camera to the next iPod nano could be an attempt by Apple to appease critics. Some initial reviews of the sixth-generation iPod nano were disappointed by the lack of a camera, noting that Apple had “given and taken away.”

Stay tuned for additional details as they become available.

Japanese earthquake/tsunami may be leading to lithium supply problems for iPod components

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Date: Wednesday, March 30th, 2011, 08:46
Category: iPod, News

Ya know, they say natural disasters are never good things.

And I believe them.

Apple is reportedly running short of lithium-ion batteries for its iPods as Japanese chemical maker Kureha stuggles to deal with the aftermath of the recent natural disasters to strike the country.

Per the Wall Street Journal, Kureha has a 70% share of the global market for a particular polymer, said to be crucial in the manufacture of lithium-ion batteries used by the iPod.

Kureha was forced to shut its factory in Iwaki, close to the epicentre of the recent quake, and is looking to move its production line overseas.

The plant in Kureha is the only place that the polymer is made. The polymer, which is made from resin called polyvinylidene fluoride (PVDF), binds components of the battery together. It is vital to the construction of batteries that are pliable rather than rigid, as they need to be to fit into the small spaces dictated by modern, small designs.

Kureha is reportedly looking to move PVDF production to its existing factories in China or the US, while keeping its research and development plant in Japan. Meanwhile, analysts warned that any mobile gadgets using lithium-ion batteries, including Apple’s iPod, could be affected by the production stoppage.

Stay tuned for additional details as they become available.

Apple releases iOS 4.3.1 update

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Date: Saturday, March 26th, 2011, 03:35
Category: iPad, iPhone, iPod, News, Software

Apple on Friday released iOS 4.3.1, the latest update to its mobile operating system. The update includes a handful of bug fixes and security patches for iOS devices.

Per Macworld, the update centers around a pair of graphics-related fixes: one for an occasional glitch on the 4th-generation iPod touch and one for flickering problems when using the Apple Digital AV Adapter with some TVs. iOS 4.3.1 also resolves a problem with authenticating some enterprise Web services and some bugs experienced when activating and connecting to cellular networks.

The update is recommended for all users of the GSM iPhone 4, iPhone 3GS, iPad, iPad 2, and the third- and fourth-generation iPod touches. To download and install it, connect your device to your Mac or PC and click Check for Updates in iTunes.

If you’ve tried the update and noticed any changes (for better or for worse), please let us know in the comments.

Owners of 2011 MacBook Pro report troubles with iTunes Home Sharing feature

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Date: Thursday, March 17th, 2011, 11:32
Category: MacBook Pro, News, Software

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As nifty as the 2011 MacBook Pro notebooks are, there may be some debugging that needs to be done.

Per AppleInsider, a number of early 2011 MacBook Pro owners report being unable to connect devices or maintain connections through iTunes Home Sharing.

A support thread in Apple’s Discussion forums has received over 200 posts from owners of Apple’s latest MacBook Pros reporting issues with iTunes Home Sharing. Several readers have also contacted AppleInsider regarding the issue.

“This is turning out to be a bigger problem than I thought with many people giving up and returning their new MBP 2011 due to this conflict. Apple has yet to find a fix but it has been widely documented via phone through AppleCare and through many Apple retail stores,” wrote one reader.

According to forum user ‘themacbear,’ the new MacBook Pro was able to stream to a second-generation Apple TV at first, but then the Apple TV reported being unable to connect or would display the error message “There are no movies in this library.”

In March, Apple released iOS 4.3 with new Home Sharing features. The Mac maker also issued iTunes 10.2 and then iTunes 10.2.1 to add compatibility with iOS 4.3 and Home Sharing. In spite of the updates, a number of users continue to report being unable to connect or maintain connections with iOS devices on their early 2011 MacBook Pros.

Recent improvements to the Home Sharing feature expand iTunes library sharing from just between Macs, PCs and Apple TVs to include mobile devices such as iPods, iPhones and iPads. When working properly, Home Sharing in iOS 4.3 allows an unlimited number of iOS devices to access content over Wi-Fi.

Though early 2011 MacBook Pros appear to be having the most trouble with Home Sharing, owners of older machines have also reported problems with the feature in a support thread for Home Sharing in iOS 4.3 that has reached 60 posts.

Stay tuned for additional details as they become available and if you’ve seen this issue on your end, please let us know.

Some fourth-gen iPod touch users reporting graphics glitches with iOS 4.3 installed

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Date: Wednesday, March 16th, 2011, 04:05
Category: iPod, News, Software

Even if iOS 4.3 is the greatest thing since sliced bread, there may be some bugs to work out.

Per Engadget, reports have surfaced of iPod touch users having graphics glitches after updating to iOS 4.3.

As seen in the video below, the problem looks like overlapping icons and “interference” on the screen:



A growing thread on the Apple message boards of fourth-generation iPod touch users also describes how resets and factory restores don’t solve the problem, it seems, and users are looking to Apple to fix the problem with an update soon.

“I’ve noticed in the lock screen, certain notifications seem to have some sort of flash thing (almost looks like it’s blinking in some cases),” says one user. “Similar to other posters in this thread. After rebooting it many times, the same issue is happening.”

“The graphics for some reason have a snowy and animated outline,” says another. “This iPod is not hacked or dropped or anything I don’t understand why this is happening. I’ve turned it off and turned it back on and still having the issue. It is NOT a major issue, it is odd though and having issues with the display on this type of device still can’t be a good sign right?”

Stay tuned for additional details and if you’ve seen the bug on your end, please let us know.

Rumor: iPhone mini could drop internal storage, rely extensively on MobileMe streaming

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Date: Monday, February 14th, 2011, 10:50
Category: iPhone, Rumor

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It’s the rumors that keep technology interesting.

With that in mind, the iPhone mini is making the rounds with the cool cats at Cult of Mac stating that the smaller iPod smartphone combo may rely on the also rumored MobileMe cloud-based iTunes storage server for streaming content from user’s media libraries.

Access to music, video and photos on the iPhone mini “would be a mostly cloud-based iOS,” according to Cult of Mac’s anonymous sources.

The rumored changes to Apple’s MobileMe service include a new Internet-based iTunes library storage system for iPhone users. Since content would be pushed wirelessly to them, the need for large amounts of RAM for local data storage would go away.

The notion that users would be able to stream their entire iTunes library may not, however, go over well with cell service providers. Relying on 3G data connections instead of Wi-Fi networks at least some of the time would push up iPhone user’s wireless data usage dramatically, and carriers may not want to deal with the extra network traffic per the Mac Observer.

Streaming content libraries would also a problem in places where data connections aren’t available, such as many flights. Unless the iPhone mini includes at least some local storage for media, users won’t be able to listen to music or watch movies when they can’t get an Internet connection.

It’s been presumed that an iPhone mini would have at least some built-in storage so users could load apps and store their contacts and appointments on the device.

As of now, Apple has yet to offer any comment, leaving the rest of this up to speculation…

Apple posts $6 billion profit in Q1 earnings call

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Date: Tuesday, January 18th, 2011, 14:56
Category: Finance, News

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Apple Inc. announced Tuesday that first quarter profits rose more than 77% to US$6 billion, or US$6.43 per diluted share, driven by record sales in three of its four major product categories, thereby beating analysts’ predicted earnings in the process.

Per AppleInsider, the company also posted record revenue of US$26.74 billion for the three-month period ended December 25, 2010, or more than US$2 billion above consensus estimates. The results compare to revenue of US$15.68 billion and net quarterly profit of US$3.38 billion, or US$3.67 per diluted share, in the year-ago quarter.

Apple sold 4.13 million Macs during the quarter, a 23% unit increase over the year-ago quarter. The company also sold 16.24 million iPhones in the quarter, representing 86% unit growth over the year-ago quarter. iPod sales during the quarter totaled 19.45 million, representing a seven percent unit decline from the year-ago quarter, while iPad sales came in at 7.33 million units.

“We had a phenomenal holiday quarter with record Mac, iPhone and iPad sales,” said Apple Chief Executive Steve Jobs. “We are firing on all cylinders and we’ve got some exciting things in the pipeline for this year including iPhone 4 on Verizon which customers can’t wait to get their hands on.”

Gross margin was 38.5% compared to 40.9% in the year-ago quarter. International sales accounted for 62% of the quarter’s revenue.

“We couldn’t be happier with the performance of our business, generating $9.8 billion in cash flow from operations during the December quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the second fiscal quarter of 2011, we expect revenue of about US$22 billion and we expect diluted earnings per share of about US$4.90.”

Stay tuned for additional details as they become available.

Rumor: Apple prepping glasses-free 3D feature for next-gen iPod touch

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Date: Tuesday, January 18th, 2011, 05:49
Category: iPod, Rumor

It seems that when Nintendo announced Apple as the enemy of the future last year, they may have been on to something. Per Macotakara, Apple could be planning on including glasses-free 3D technology in the next iteration of the iPod touch, putting it in direct gaming competition with Nintendo’s upcoming 3Ds handheld gaming console.

A trusted source has reportedly stated that a Japanese manufacturer is currently preparing to produce a large quantity of glasses-free 3D capable LCD panels for the next generation iPod touch.

Interesting if it proves to be true and we’ll have to wait and see.

Apple patent application shows interest in developing solar as a power source for mobile devices

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Date: Friday, January 14th, 2011, 06:44
Category: News, Patents

A recently revealed patent application shows that Apple is continuing to research solar power as a potential secondary power source for its mobile devices.

Per freepatentsonline, the application, which describes an auxiliary solar cell that interfaces with a device’s battery, was published earlier this week.

The invention includes a “battery charging manager” that can handle power from a “plurality of power sources including a solar power source.”

According to the filing, the patent is for “a solar power package for use with an electronic device, the package comprising: at least one solar cell operable to derive solar power from solar energy; and a power charger operable to provide the derived solar power to the portable electronic device, wherein the derived solar power is provided in a plug-and-play fashion when the portable electronic device is coupled to the package, and wherein the power charge is operative to adjust the amount of power provided to the portable electronic device based on attributes of the portable electronic device.”

Alternate embodiments of the invention include charging the device’s battery or an accessory battery, simultaneously charging a battery and providing power to the device and removable solar cells. The described solar power charging accessory could be used to power “a media player, a notebook computer, a tablet computer, a cellular phone, an image processing device, and a handheld computing device.”

IPBiz has reported that Apple’s patent application hit several snags because of similarities to a patent for a solar charger case and a patent for solar power connector cables, but that Apple maker was able to distinguish its patent because the invention is “plug-and-play” and regulates power levels according to the attributes of the device it is powering.

Apple has been looking into solar power for its portable devices for several years now. Early last year, the U.S. Patent & Trademark Office published an application describing a portable device such as an iPod or iPhone with solar cells on the front and back that could power the device and recharge the battery.

The patent, which was filed in Feb. 2009, is titled “Portable devices having multiple power interfaces” and replaces a prior application from 2006 with the same title. Wendell B. Sander and Daniel A. Warren are listed as the inventors.

According to his LinkedIn profile, Daniel Warren is an iPod System Integrator for Apple and has previously worked on the iPod Nano, iPod Classic and iPod Shuffle.

Apple’s interest in solar power may be a result of environmentally conscious initiatives that the company has adopted in recent years.

Several years ago, Apple was openly criticized by Greenpeace for the use of toxic chemicals in its products. Last year, Greenpeace praised Apple for its turnaround, honoring the Mac maker with the environmental advocacy group’s top ranking as the greenest electronics marker.