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.

Apple releases iTunes 10.2.2 update

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Date: Tuesday, April 19th, 2011, 03:14
Category: News, Software

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Late Tuesday, Apple released iTunes 10.2.2, the latest version of its multimedia/jukebox application for Mac OS X. The new version, a 24.5 megabyte download, offers the following fixes and changes:

- Addresses an issue where iTunes may become unresponsive when syncing an iPad.

- Resolves an issue which may cause syncing photos with iPhone, iPad, or iPod touch to take longer than necessary.

- Fixes a problem where video previews on the iTunes Store may skip while playing.

- Addresses other issues that improve stability and performance.

iTunes 10.2.2 is available via Mac OS X’s Software Update feature and requires Mac OS X 10.5 or later to install and run.

Apple releases iOS 4.3.2 update

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Date: Friday, April 15th, 2011, 03:34
Category: iPad, iPhone, iPod, News, Software

Late Thursday, Apple released iOS 4.3.2, the latest update to its mobile operating system for its iPhone, iPod touch and iPad devices. The update includes the following fixes and changes:

- Fixes an issue that occasionally caused blank or frozen video during a FaceTime call.

- Fixes an issue that prevented some international users from connecting to 3G networks on the iPad Wi-Fi + 3G.

- Contains latest security updates.

The update is recommended for all users of the GSM and CDMA 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.

Apple posts job listing focused on improving cloud services

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Date: Thursday, April 14th, 2011, 03:07
Category: Mobile, Rumor, Software

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When the job listings go up, things become interesting.

Per AppleInsider, Apple is building a small team to write software which will lay the groundwork for the company’s future Web services, which it has advertised as “the future” of its cloud-based offerings.

This week the company posted a new job listing for the position of “Cloud Systems Software Engineer.” The full-time role at the company’s Cupertino, Calif., campus will join a “small team” that is said to be building “the future of cloud services at Apple.”

That small team writes “software which forms the foundation” for some of Apple’s “most exciting new products and services,” the job listing reads. In keeping with Apple’s legendary secrecy, the listing does not reveal what services the company’s cloud-driven future will include.

The company is apparently looking to hire an engineer with experiencing in scalable and extensible systems. The ideal candidate will collaborate with other engineering teams at Apple to build the platform frameworks and systems that will power Apple’s next-generation Web services.

Apple has offered cloud-based services for some time with its US$99-per-year MobileMe service. According to unconfirmed rumors, Apple is expected to unveil an enhanced version of MobileMe this year, featuring a digital “locker” that would store personal files such as photos, music and videos. That content could be streamed to Internet-connected devices like iPhones, eliminating the need for a large amount of local memory on devices.

In particular, Apple is believed to be working on a cloud-based music service that would allow users to stream their music from anywhere. Such a product could be powered by Apple’s new massive data center in North Carolina, expected to go online this spring.

This week’s latest job listing from Apple comes only months after the company sought to add software engineers to its iOS development team with an emphasis on remote storage for data access. Cloud support is rumored to be a major component of iOS 5, the next major version of Apple’s mobile operating system for the iPhone and iPad. One report from March said Apple plans to release iOS 5 this fall.

Stay tuned for additional details as they become available.

Apple releases Mac OS X Supplemental Update to resolve MacBook Air/iTunes issue under Mac OS X 10.6.7

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Date: Thursday, March 31st, 2011, 04:43
Category: MacBook Air, News, Software

Just over a week after releasing Mac OS X 10.6.7, Apple has issued a subsequent patch aimed at users of the new Late 2010, 13 inch MacBook Air to fix a system crash related to iTunes.

“This update addresses an issue that makes the system unresponsive when using iTunes,” Apple notes on its support page.

Per AppleInsider, the patch is just a 461 KB download and requires Mac OS X 10.6.7 Build 10J869 to be installed first. Both are available via Mac OS X’s Software Update feature.

The system lockup problem on new 13″ Air models appeared in Apple’s discussion forums after the release of Mac OS X 10.6.7 as an easy to replicate issue that resulted in having to force reset affected systems, indicating that the problem was inadvertently introduced with last week’s larger update.

If you’ve tried the update and noticed any differences, please let us know in the comments.

How-To: View an AVI file on your iOS device

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Date: Friday, March 18th, 2011, 04:35
Category: iPad, iPhone, iPod, News

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As nifty as Apple’s iOS devices are, there are some limitations. One of these hurdles is the ability to play videos in an AVI format, which isn’t supported by iTunes or the native video player in the iPhone and iPad.

The cool cats at Mac|Life have thrown together a quick guide as to how to solve this problem, the author recommending that the HandBrake program can be used to convert an AVI movie into an MP4 file that will play perfectly on our iPhone, iPad or iPod touch.

Users can also download an iPhone or iPad app that does play these files, such as CineXPlayer for iPad (US$2.99) or the universal GoodPlayer (US$2.99), and use that to watch your videos without needing to convert them.

If you’ve played with any of these programs or have conversion tips of your own, please let us know in the comments.

Apple releases iOS 4.3 for iPhone, iPad and iPod touch devices

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Date: Thursday, March 10th, 2011, 04:02
Category: iPad, iPhone, iPod, News, Software

If you missed it yesterday, Apple released its latest version iOS on Wednesday, the long-awaited iOS 4.3 update becoming available through iTunes and introducing the following new fixes and features:

- Personal Hotspot – Share iPhone 4 cellular data connection with up to 5 devices (combination of up to 3 Wi-Fi, 3 Bluetooth, and 1 USB).

- iTunes Home Sharing – Play music, movies and TV shows from a shared iTunes library on a Mac or PC (requires iTunes 10.2).

- New Airplay features – Play videos from the Photos app including the Camera Roll album, iTunes previews, enabled third-party appsand websites on Apple TV – Play slideshows from Photos on Apple TV using transitions available on Apple TV.

- Faster Safari performance with Apple Nitro JavaScript engine.

- HD video out using the Apple Digital AV Adapter – View 720p HD videos from Videos app, iPod app, Photos, YouTube, Safari, Keynote, and enabled third-party apps on an HDMI display
Ping features.

- Push notifications for comments and follow requests.

- Post and Like songs directly from the Now Playing screen.

- Parental controls.

- New Settings.

- Messages setting for number of times to repeat an alert.

- iPad side switch setting to lock screen rotation or mute audio notifications and sound effects.

- Single tap conference call dialing with a pause to send a passcode.

- Bug fixes.

Amongst the biggest inclusions are Home Sharing (the ability to stream audio and video from iTunes on a local network to the iOS device); AirPlay (the ability to stream audio and video from the iOS device to an Apple TV or computer) for third-party developers; and the ability to create a personal WiFi hotspot from an iPhone or iPad with 3G support.

Per Macworld UK, users may need a qualifying data plan from your carrier and any necessary hotspot or tethering options to enable the much-anticipated Personal Hotspot feature. Users with an unlocked iPhone can use the feature without restriction. However, we advise users of this feature to keep a close eye on data charges as some mobile phone companies are now restricting data usage.

A couple of minor features snuck into iOS 4.3. Users can now enable Push Notifications for Ping activity, and the iPod app’s Now Playing screen offers the options to post about songs and like them on your Ping profile. Also new is a preference to specify how many times an SMS alert is repeated, as well as a conference dialing option to add a pause for entering a passcode.

Missing from iOS 4.3, however, are the new multitouch gestures that Apple asked developers to test on the iPad during the beta period. Gestures like four- and five-finger swipes could switch between apps and reveal the multitasking bar, and a pinch could exit an app and return you to the Home Screen. With the second iOS 4.3 beta, however, Apple clarified that these features were only for testing and would not ship to consumers in the final version. Obviously, they could return in a future iOS update or upgrade, but Apple hasn’t stated any plans.

iOS 4.3 is available now as a free update in iTunes for the iPad, iPhone 3GS, the GSM iPhone 4, and third- and fourth-generation iPod touch. As for the Verizon iPhone 4, it runs a custom version of iOS 4.2.6 that includes some features like hotspot support. Comments from an Apple representative at the iPad 2 event suggest that it might take a little while for Verizon’s iPhone 4 to converge with the same iOS version as Apple’s other mobile devices.

If you’ve snagged the iOS 4.3 update, please let us know how it’s working on your devices, for better or for worse.

Apple releases iTunes 10.2.1 update

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Date: Wednesday, March 9th, 2011, 04:00
Category: News, Software

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Late Tuesday, Apple released iTunes 10.2.1, the latest version of its multimedia/jukebox application for Mac OS X. The new version, a 75.6 megabyte download, offers the following fixes and changes:

- iTunes 10.2.1 also includes improved Home Sharing, and lets users play music from their iTunes library on any iPhone, iPad or iPod touch over Wi-Fi using iOS 4.3. Any other changes to iTunes from version 10.2 are likely minor, as Apple did not detail them.

iTunes 10.2.1 is available via Mac OS X’s Software Update feature and requires Mac OS X 10.5 or later to install and run.

Apple to cut certain products from retail locations, focus on personalized setup services

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Date: Tuesday, March 8th, 2011, 04:38
Category: News

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As much as you love a certain selection in the Apple Store locations, the old stuff has to go.

Per The Loop, Apple reportedly plans to ax some hardware and software products from its store shelves to make room for an expansion of its popular personalized in-store setup service. The lineup includes some of the printers, scanners and potentially hard drives presently on display. Though they will not be directly shown in the store, such peripherals will still be available for sale if a customer requests them.

Apple is also said to drastically cut the number of games it sells in stores. Sources reportedly said that the company will get rid of 32 game titles from its retail locations, leaving each store with only about 8 games on display.

Unlike the hardware, which will still be available for sale, the games will not be available for purchase in Apple stores, as such software is said to not be strong sellers. Customers will reportedly be advised that they can download titles for Mac OS X from the Mac App Store.

In order to expand its personalized setup program, the article stated said that new employees are being hired in some locations. In other stores, the employee that sells a product will be the one to do the setup.

The personal setup service is said to be viewed as an opportunity for Apple to differentiate itself from competitors. With the service, customers are guided through setting up their Mac, signing up for an iTunes account, and given a quick walkthrough of the Mac experience.

In February, it was said that the initial success of the Mac App Store has sped up Apple’s plans to cease all sales of boxed software at its retail stores. The Cupertino, Calif.-based company allegedly plans to rely solely on digital distribution of software, and in the process will clear out space in its retail stores.

The company has also halted retail boxed sales of one of its own major digital products, MobileMe, late last month. The cloud-based syncing service, which costs US$99 a year, is rumored to receive a significant makeover in the near future.

Let us know if you’ve seen anything of this on your end and please let us know what you think of the changes in the comments.

Apple releases iOS 4.3 Golden Master build to developer community

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Date: Friday, March 4th, 2011, 05:08
Category: iPad, iPhone, iPod Touch, Software

Late Thursday, Apple released the gold master build of its iOS 4.3, its forthcoming operating system update for its iPhone, iPad and iPod touch devices, just over a week ahead of its scheduled March 11 release.

Per AppleInsider, the download is available to developers through Apple’s official iOS developer portal. People familiar with the software say it is known as build 8F190.

Typically a gold master issued to developers is identical to the version that eventually becomes the final release, though two Golden Masters of iOS 4.2 were released after the first was found to have issues.

Apple announced the mobile operating system software update’s March 11 released date on Wednesday, and also showed off new, previously unannounced features. Among them is improved JavaScript performance, which is now said to be two times faster thanks to the Nitro engine taken from Mac OS X.

Improved iTunes Home Sharing will also allow users to access all of their content directly over Wi-Fi. And enhancements to AirPlay will allow applications and websites to stream over Wi-Fi to the Apple TV set top box. Sharing of photos over AirPlay can also use the built-in slide show options of iOS.

The new Personal Hotspot feature in iOS 4.3 lets users share their 3G data connection over Wi-Fi. Personal Hotspot will work with supporting carriers and monthly data plans on the iPhone 4.

iOS 4.3 also adds the ability to change the purpose of the hardware switch on the right side of the iPad and iPad 2. Users can choose to have the switch mute audio from the device, or have it serve as an orientation lock, as it originally did when the iPad first shipped last year.

The iOS 4.3 update is compatible with the iPhone 4, iPhone 3GS, first-generation iPad, iPad 2, and the third- and fourth-generation iPod touch. iTunes 10.2 has already been publicly released, adding compatibility with devices that are running iOS 4.3

If you’ve gotten your hands on the GM and have any feedback to offer, please let us know in the comments.