...from:
http://www.macworld.com/article/161212/2011/07/apple_third_quarter_earnings…
Apple reports record sales, profits for third quarter
by Philip Michaels, Macworld.com Jul 19, 2011 3:43 pm
Record iPhone and iPad sales combined with continued growth of its Mac business pushed Apple to another strong performance in its fiscal third quarter. On Tuesday, the company reported sales of $28.57 billion and net profit of $7.31 billion for the three-month period ended June 25, 2011.
The sales and profit figures—both quarterly records—increased last year’s third-quarter performance by 82 percent and 125 percent, respectively. Apple reported earnings of $7.79 per share, which beat analyst estimates of $5.85. Analysts had also been looking for Apple to reach $24.92 billion in sales for the quarter—a figure the company topped by nearly $4 billion.
“We are extremely pleased with the momentum of our business,” chief financial officer Peter Oppenheimer told analysts during aconference call to discuss the earnings report on Tuesday. Oppenheimer noted that during its 2011 fiscal year, Apple has recorded $35 billion in year-over-year revenue growth and $9.5 billion in year-over-year earnings growth—increases of 78 percent and 99 percent, respectively.
Record iPhone sales
Apple says it sold 20.34 million iPhones during the just-completed quarter, a 142 percent increase from the phones it sold during the same period last year. That’s also the most phones Apple has ever sold during a quarter, topping the 18.65 million mark set just three months ago.
The iPhone racked up strong sales despite Apple skipping its customary summer introduction of a new model, after releasing the iPhone 4 in the summer of 2010 and the iPhone 3GS the summer before that. The last new iPhone released by Apple was a CDMA version of the smartphone compatible with Verizon’s wireless network; that model came out in February. The long-awaited white version of the iPhone also shipped in April.
Apple saw $13.3 billion in recognized revenue for its iPhone business during the third-quarter. That’s an increase of 150 percent from the year-ago total of $5.3 billion. The iPhone is now available in 105 countries from 228 carriers.
The iPad 2’s arrival
Apple sold 9.25 million iPads during the third quarter, the first full quarter of sales for the iPad 2, which arrived in March. Apple says its iPad sales topped last year’s figures by 183 percent. It also set a new record for quarterly iPad sales, besting the previous mark of 7.3 million during the 2010 holiday shopping season.
All told, the iPad launched in 36 countries during the quarter, bringing the number of countries where Apple is selling its tablet to 64. Apple reported recognized revenue of more than $6 billion for the quarter, up from $2.2 billion last year.
The iPad 2 launch had been marked by shortfalls and production delays. Oppenheimer indicated on Tuesday that the company has managed to increase iPad production from its second quarter, though iPad inventory remains below Apple’s target range. “We sold every iPad we could make,” Oppenheimer said.
“The sales of iPad 2 have absolutely been a frenzy for people to get one, and we feel very good about the progress that we’ve made about ramping up and the reception that we’ve received in the marketplace,” chief operating officer Tim Cook added during Tuesday’s conference call with analysts.
Combine iPad sales with all the iPhones and iPod touches sold by Apple, and the company has record cumulative sales of 220 million iOS devices through the June quarter—a figure Apple doubtlessly will tout in the face of increased competition from Google’s Android operating system, as the company looks to remind app developers of the iOS platform’s reach.
Mac momentum
Mac sales rose 14 percent from last year, with Apple selling 3.95 million computers. That’s a record for the third quarter, Oppenheimer said. Growth of Mac sales also outpaced market-research firm IDC’s forecasted PC market growth by more than four times, Apple pointed out.
Mac sales grew across all of the regions where Apple does business, though Oppenheimer cited the Asia-Pacific segment in particular. Unit sales of Macs grew 57 percent in that part of the world. (The Asia-Pacific segment excludes Japan, which saw more modest unit sales growth of 16 percent.)
The quarter saw Apple introduce new iMacs with quad-core processors, improved graphics, and Thunderbolt connectivity. All told, Apple sold 1.15 million desktops, accounting for about 30 percent of the Macs sold during the quater. The company sold 2.79 million portable Macs during the quarter, with the MacBook Pro and MacBook Air driving those sales, according to Oppenheimer.
Apple typically avoids addressing future product releases during its analyst calls, but the company had one announcement sure to be of interest to Mac users: Lion hits the Mac App Store on Wednesday. Previously, Apple had told users to expect a July release for the next version of its Mac operating system.
Falling iPod sales
iPod sales continued to decline from the heights of previous years. Apple says it sold 7.54 million iPods, a 20 percent drop from last year, though Oppenheimer said that was above the company’s expectations. The iPod touch accounts for about half of all iPods sold, according to Apple’s figures, which has helped keep the average selling price of the iPod steady, even as overall sales drop.
Apple got better results from its iTunes Store, which tallied revenue of almost $1.4 billion. That’s an increase of 36 percent from last year’s figure, with growth driven by continued downloads. Apple says there are more 225 million iTunes accounts.
Retail figures
A little more than 10 years after the first Apple Store opened its doors, Apple’s brick-and-mortar retail efforts continue to grow. The company’s retail arm reported $3.5 billion in sales for the quarter, an increase of 36 percent from last year. Apple sold 786,000 Macs through its stores during the quarter, an increase of 13 percent. Oppenheimer repeated a figure that’s become a staple of Apple’s quarterly conference call—that half of the Macs sold at Apple stores are to customers buying their first Mac.
Apple opened four new stores during the quarter—all outside of the U.S.—bringing the total number of Apple Stores to 327 by quarter’s end.
Look for expansion efforts to pick up in the September quarter, as Apple plans to open 30 new stores, including its first one in Hong Kong. If Apple meets that target, it will have opened 40 new stores during the 2011 fiscal year.
As for its virtual store front, the App Store now offers more than 425,000 apps. Oppenheimer noted that the store passed the 15 billion download mark last week and repeated a figure from last month’s Worldwide Developers Conference: that Apple has paid out $2.5 billion to developers for iOS apps sold through the App Store.
The road ahead
Apple finished the quarter with $76.2 billion in cash and short- and long-term investments. The company also outlined—in painstaking detail—its plans to defer revenue related to the release of Lion and iLife via the Mac App Store and the upcoming debut of Apple’s iCloud online services.
For the coming quarter, Oppenheimer told analysts to expect earnings per share of $5.50 on revenue of $25 billion. Oppenheimer’s guidance is notoriously conservative—prior to Tuesday’s call, analysts were predicting earnings of $6.42 per share on revenue of $27.70 billion for the fiscal fourth quarter.
No telling (it seems) if any of these made it to Canada....
...from:
http://www.apple.com/support/imac-harddrive/
iMac 1TB Seagate Hard Drive Replacement Program
Apple has determined that a very small number of Seagate 1TB hard drives used in 21.5-inch and 27-inch iMac systems, may fail under certain conditions. These systems were sold between May 2011 and July 2011.
Apple or an Apple Authorized Service Provider (AASP) will replace affected hard drives free of charge.
Apple is contacting affected iMac owners who provided a valid email address during the product registration process to let them know about this program. If you have not been contacted, but think you have a 1TB Seagate hard drive, you can enter your [on the page link above] to see if it's part of this program.
Finding your iMac serial number is easy. See how.
Replacement Process
If your iMac has an affected hard drive, please choose one of the options below to get it replaced:
Apple Retail Store - Set up an appointment with a Genius.
Apple Authorized Service Provider - Find one here.
Apple Technical Support - Contact us for local service options.
Apple recommends replacing affected hard drives as soon as possible. Before you go in for service, please back up your data. Learn more about backup options.
Additional Information
You will need to have the original OS installation discs that were shipped with your product in order to re-install your operating system, other applications and any backed up data after your hard drive is replaced.
This worldwide Apple program does not extend the standard warranty coverage of the iMac.
Apple will replace affected Seagate hard drives, free of charge, until July 23rd, 2012. Apple will continue to evaluate service data and will provide further extensions to this program as needed.
Wayne Billing
Classroom Technology Support
Audio Visual and Classroom Technology Support
130 Machray Hall Building
474-6649
474-7625 (fax)
Wayne_Billing(a)umanitoba.ca
On the Wallstreet Journal run site "All things D(igital)", there are two stories about the growth of iPad and iPhone:
....from:
http://allthingsd.com/20110721/apple-the-worlds-largest-smartphone-vendor/?…
Apple: World’s Largest Smartphone Vendor
JULY 21, 2011 AT 8:23 AM PT
Another notch in Apple’s belt. The iPhone maker has finallyovertaken Nokia as the world’s biggest smartphone vendor.
Posting abysmal second-quarter earnings this morning, Nokia reported smartphone shipments that slid 34 percent to 16.7 million units, and in doing so, forfeited its title as world’s largest smartphone manufacturer by volume. Apple, which became the world’s largest handset vendor by revenue in the first quarter of 2011 (again overtaking Nokia to claim that title), shipped 20.3 million iPhones in its second quarter.
Until today, Nokia had dominated the smartphone market for about 15 years after essentially creating it with the Nokia 9000 Communicator in 1996.
An astonishing upheaval in the global smartphone landscape — more so because Apple managed it in under five years. With a single smartphone.
....from:
http://allthingsd.com/20110721/ipad-trouncing-android-in-enterprise/
John Paczkowski
iPad Trouncing Android in Enterprise
JULY 21, 2011 AT 6:00 AM PT
The tablet is not yet a standard-issue sidearm in enterprise, but it’s well on its way to becoming one — particularly Apple’s iPad.
According to Good Technology, which provides mobile device management services to 49 of the Fortune 100 and 182 of the Fortune 500, 27 percent of the mobile devices activated by its enterprise customers during the second quarter of 2011 were tablets.* And most of those were iPads.
More than 95 percent, actually.
Which is impressive, certainly, but not all that surprising. The iPad is more well-established in the tablet market than its various Android rivals; it makes sense that it has made deeper inroads into enterprise. That said, it’s worth noting that Android tablet activations among Good customers actually declined to 3.1 percent during the quarter, despite the debut of the Motorola Xoom and Samsung Galaxy. In fact, Good noted more iPad activations during the quarter than activations of all Android tablets and smartphones combined. Interesting, considering Android’s recent growth.
Why the disparity? John Herrema, Senior Vice President of Corporate Strategy at Good, thinks it’s got a lot to do with the consumerization of IT and the growing number of “Bring Your Own Device” employees in the enterprise space.
“We attribute the large gap between iPad and Android tablet activations to the combination of user preference among our ‘BYOD’ users and large deployments of company-owned iPads, especially in verticals like financial services and healthcare,” he told AllThingsD.com.
But the iPad can’t maintain that vast a lead forever. Android will likely narrow the gap in tablet activations just as it did for smartphones before, though Good doesn’t see that happening until at least 2012.
“As we saw with Android smartphones over the course of 2010, we do expect Android to narrow this huge gap in tablet activations,” the company wrote in its Device Activations Report. “However, we don’t see that happening in 2011. The iPad 2 simply has too much momentum.”
Indeed. As Apple CFO Peter Oppenheimer said during Apple’s latest earnings call earlier this week, “Today 86 percent of the Fortune 500 are deploying or testing iPad within their enterprises, up from 75 percent last quarter. We are also seeing strong adoption internationally with 47 percent of Global 500 companies testing or deploying iPad. In the 15 months since iPad has shipped, we have seen iPad used in the enterprise in ways we could have never imagined.”
*Good’s survey data does not include Research In Motion’s BlackBerry PlayBook or Hewlett-Packard’s TouchPad.
...from:
http://www.apple.com/macosx/uptodate/
If you've purchased a qualifying computer that does not include OS X Lion, you can upgrade to Lion free of charge. And if you recently purchased a qualifying Mac Server, you can upgrade to Lion Server at no additional cost. Check out the conditions below to see if you qualify.
OS X Lion Up to Date Program- How it works
Qualifying purchases between June 06, 2011 and July 20, 2011
Customers who purchase a qualifying new Mac Computeror an Apple Certified Refurbished computer from the Apple Online Store between June 6, 2011 and July 20, 2011 that does not include OS X Lion can upgrade to OS X Lion for free.
If you purchased your computer from the Apple Online Store, an Apple Retail Store, or an Apple Authorized Reseller, follow one of these links to participate in the program. Remember your order must be entered by August 19, 2011. Subject to terms and conditions.
Redeem from the Apple Online Store
If you cannot submit an order through the Apple Online Store, follow this link to participate in the program.
Qualifying purchases on or after July 21, 2011
Customers who purchase a qualifying new Mac Computeror an Apple Certified Refurbished computer from the Apple Online Store on or after July 21, 2011 that does not include OS X Lion can upgrade to OS X Lion for free.
If you purchased your computer from the Apple Online Store, an Apple Retail Store, or an Apple Authorized Reseller, follow one of these links to participate in the program. Remember your completed order must be entered within 30 days of the date of your purchase of a qualifying computer (described in this offer). Subject to terms and conditions.
Redeem from the Apple Online Store
If you cannot submit an order through the Apple Online Store, follow this link to participate in the program.
In case you haven't yet seen it, OS X 10.7 (Lion) is now available for purchase from the MacApp store:
http://www.apple.com/ca/macosx/
As a side bar, for those of you who need/use JAVA (from the Apple JAVA developer's mailing list):
Date: Wed, 20 Jul 2011 08:37:17 -0700
From: Mike Swingler <swingler(a)apple.com>
Subject: Re: Java and OS X Lion
Cc: Java-Dev Mailing List <java-dev(a)lists.apple.com>
Message-ID: <BB21E599-5AF8-43CA-ABC4-005C0B61FEE3(a)apple.com>
Content-Type: text/plain; charset=us-ascii
Java for Mac OS X 10.7 Lion is provided as an install-on-demand download.
Launching an application that is linked against the JavaVM framework (as the JavaApplicationStub is), causes the install-on-demand dialog to be presented, the app is terminated, and if the runtime was successfully installed, the app is re-launched.
Long-term, we recommend that app developers who use the JavaApplicationStub should transition to embedding the Java runtime within their own app. We are working with Oracle on the OpenJDK project to provide an open source version of JDK7 that can be embedded, and several developers have already started deploying their apps with an embedded JDK7 (but it requires many manual steps right now).
We are tracking the progress of creating an embeddable JRE in <http://java.net/jira/browse/MACOSX_PORT-105>.
Regards,
Mike Swingler
Java Engineering
Apple Inc.
Wayne Billing
Classroom Technology Support
Audio Visual and Classroom Technology Support
130 Machray Hall Building
474-6649
474-7625 (fax)
Wayne_Billing(a)umanitoba.ca
