Apple on Tuesday reported earnings for the third quarter of fiscal 2011. Shares of Apple Tuesday were trading at near-record levels as investors expected Apple to post its biggest June quarterly earnings ever, and the company didn’t disappoint. Wall Street was predicting revenue of $24.92b, a whopping 58% YoY increase, and Apple’s revenue for the June quarter came in at a mind-blowing $28.57b. Analysts predicted 16.5 million iPhones, 4.2 million Macs, and 7.8 million iPads with actual sales coming in at 20.34m iPhones, 9.25m iPads, and 3.95m Macs. Press release is after the break:
A Dutch Apple blog named AppleSpot reported on Friday that Apple will launch a new 3G iPod touch in September. Similar to options available for the iPad Wi-Fi + 3G, users would have the option of purchasing the 3G iPod touch directly from a wireless carrier with a data plan. We’re expecting a possible iPod/iPhone/iPad refresh in September, and so it’s entirely possible that Apple is considering creating a version with a 3G radio. Such a device could also help carriers lock in more data plans and would continue to boost Apple’s presence among the flood of new Android handsets. Our only gripe with the whole story is that AppleSpot doesn’t have a proven track record reporting on Apple rumors. Plus, a 3G iPod touch would be just a little weird given that we expect every major U.S. wireless carrier to announce the next generation iPhone. More →
Last week Samsung filed an official complaint with the International Trade Commission (ITC) asking the government body to block the import of Apple’s iPod, iPhone, and iPad. Apple flipped the tables on Samsung and has filed its own complaint with the ITC asking that it block the import of Samsung’s tablets and smartphones, Bloomberg said. The move follows Apple’s request to a U.S District Court in San Jose to block the import of Samsung’s Galaxy Tab 10.1, Infuse 4G, DROID Charge and Nexus S 4G. The legal battle has been ongoing since Apple filed a lawsuit against Samsung in April and accused the Korean phone maker of creating copycat devices that infringed on its intellectual property. Samsung bit back later in April and said that it will do everything it can to protect its own intellectual property. Meanwhile, U.S. courts have granted Apple access to Samsung’s most recent products, but have denied Samsung the same access to the Apple iPhone 5 and iPad 3. The legal battle could place strain on Samsung’s component business, which is expected to struggle during the second half of this year — Apple is the largest buyer of Samsung’s LCD products. More →
Apple’s iOS App Store, which is now home to over 500,000 applications, is currently down according to several tips we have received via email. Preliminary reports of the outage first came in shortly after 2:00 p.m. Eastern. The store is accessible and app pages can be opened, but apps cannot be installed on iPhones, iPads or on iPod touch units. Users report that app updates are not being downloaded either, though available updates to appear on the Updates tab. BGR has confirmed the issues on several iOS devices. Oddly, some users are reporting that installations are working sporadically, while others are not able to install any apps at all. Let us know if the App Store is working for you in the comments below.
UPDATE: Functionality appears to have been restored some time before 2:55 p.m.
One of our Apple sources has informed us that they’ve been hearing Apple’s yearly back-to-school special will be announced at WWDC next month. We have been told Apple will continue to offer educational discounts on computers and either a free iPod touch, or $229 towards the purchase of any other iPod. Our source also let us know that there might be something new in the works, as well… they heard that it’s possible Apple might offer students up to $200 off an iPad with the purchase of a new Mac. If true, this would be pretty great deal. If only Apple could make enough of them…
Thanks, Lindsey S.!
Apple’s next-generation iPod nano may ditch the clip design and instead feature a 1.3-megapixel camera, according to leaked images posted by Taiwanese blog Apple.pro. The overall design of the unit looks similar to the current iPod nano, although there’s a chrome border around the new camera and the metal exterior has a noticeably deeper green hue, which suggests new colors are on the way. We’re a bit surprised at the lack of a clip on the nano, though, as most people we’ve seen with the music player use it — so perhaps it’s possible the clip can be removed to expose the camera lens. Either way, the form factor definitely matches earlier leaks of the next-generation iPod nano. More →
Giddy over Apple’s consistent staggering growth — and seemingly giddier over the iPad — Formula Capital managing partner James Altucher believes that Apple is poised to become the first $1 trillion company. In fact, Altucher thinks Apple could already be a $2 to $3 trillion company. According to Altucher, Apple can basically do no wrong — he believes demand for the iPad 2 will continue to grow and then new products like the iPhone 5 and iPad 3 will send demand for Apple devices through the roof. He goes on to state that Jobs’ eventual departure from the company won’t even have a significant impact on Apple’s future, as many analysts expect, thanks to other great innovators within Apple such as Tim Cook. Apple’s market capitalization is currently around $320 billion, so its stock price would have to balloon to about $1,000 for Apple to hit $1 trillion. Hit the break for an enthusiastic Altucher talking up Apple in an interview with Business Insider. More →
Apple on Wednesday reported earnings for the second quarter of fiscal 2011. Reports from Tuesday suggesting Apple might miss iPad sales estimates were accurate as Apple reported second-quarter sales of only 4.69 units compared to 7.33 million iPads last quarter. Analyst estimates fell between 6 and 8 million iPads for the March quarter. Apple’s iPhone sold 18.65 million units globally in the second quarter compared to 8.75 million units in the same quarter last year and 16.24 million units in the first quarter of fiscal 2011. iPod sales came in at 9.02 million units, down from 10.89 million in the second fiscal quarter of 2010 and 19.45 million last quarter. Wall Street was expecting 16 million iPhones and 9.9 million iPods in the quarter. Mac sales narrowly beat the Street’s estimates of 3.6 million units, totaling 3.67 million units in the March quarter, up from 2.94 million last year and down from 4.13 million from last quarter. Revenue for the second quarter came in at $24.67 billion and Apple recorded $5.99 billion in profit, up 95% from $3.07 billion in the same quarter last year. Apple noted in its earnings call that the earthquakes in Japan will not affect Apple’s supply chain or its products in the third quarter. The company’s full press release can be seen after the break. More →
Following RBC Capital Markets General Manager Mike Abramsky’s lead, JP Morgan analyst Mark Moskowitz on Friday raised his revenue and EPS estimates for Apple’s 2011 fiscal second quarter. RBC upped its second-quarter revenue estimate from $23 billion to $24 billion on Tuesday, citing pent up iPad demand and strong sales of the Verizon iPhone 4 and newer laptop lines. On Friday, JP Morgan’s Moskowitz wrote in a note to investors that iPhone shipments in the quarter were likely stronger than expected thanks to the launch of the Verizon model and the addition of new sales channels for the GSM version of the popular smartphone. As such, he upped second-quarter estimate from 16.6 million units shipped to 18.4 million. Moskowitz raised his revenue estimate for the quarter to $24.42 billion from his earlier estimate of $23.83 billion, and adjusted his EPS estimate to $5.39 from $5.21. Apple will report its earnings for the March quarter on April 20th.
A Pennsylvania man has filed a class action lawsuit against Apple in a U.S. District Court in San Francisco alleging that the firm deliberately targets children with free applications that have appealing in-app purchases. Garen Maguerian believes that kids are purchasing in-app content and unknowingly costing their parents bundles of cash. In-app purchases are a great way to purchase extra content, such as levels or characters, in games. However, games such as Smurf’s Village or FarmVille can charge up to $99.99 for extra content that can be used to advance further in the game. “These games are highly addictive, designed deliberately so, and tend to compel children playing them to purchase large quantities of Game Currency, amounting to as much as $100 per purchase or more,” the suit says. Maguerian believes Apple is fostering these actions by allowing children to buy currency with the same iTunes App Store password they use to download free games. Since minors are entering the agreement with Apple to pay-up, Maguerian thinks that the contracts are not valid. “Apple has not offered to return to its account holders any of the millions of dollars it received from their minor children’s purchases,” Maguerian said in the lawsuit, which he is seeks refunds (including interest), damages, and legal fees. More →
We would like to extend a warm, Apple-rumor fueled welcome to Mr. Kevin Kenney. Technology blogs have picked up on the hiring of Kenney, a San Francisco-based mechanical engineer, by iDevice maker Apple, Inc. Via Kenney’s LinkedIn profile, we see that he is now a “Senior Composites Engineer” for the Cupertino-based company. The engineer has spent the last fourteen years working for Kestral Bicycles where, as 9to5 Mac reports, he was “building carbon fiber bicycles.” The hiring has ignited rumors of carbon fiber iMacs, iPads, and iPhones — personally, we’re holding out for a carbon fiber Magic Mouse. Kenney has worked for Apple on a contract basis for the past several years, and his name is on at least one carbon fiber-related Apple patent. If you read that the iPhone 6 will be made of composite materials , you now know where the rumor started. More →
On Wednesday Microsoft confirmed with enthusiast blog LoopinSight that it will launch Service Pack 1 for Microsoft Office for Mac 2011 next week. The update will reportedly include performance enhancements, as well as security and stability fixes, but it will also include major changes for Outlook for Mac. After applying the software patch, users will be able to sync their Outlook calendars, tasks, notes, and contacts with Apple’s Sync Services, and it includes support for CalDAV calendars. The update will also add a new redirect and resend buttons. iPhone and iPod touch devices will also stay in sync, Pat Fox, Microsoft’s senior director of product management told The Loop. Service Pack 1 does come with one caveat, though: users will not be able to use Sync Services to sync with the MobileMe calendar beginning on May 5th. More →
Patently Apple reports that its Cupertino-based namesake has been granted a new patent for an improved 30-pin dock connector. The interface, which is used by Apple’s iPhone, iPad and iPods, is slightly thinner and will be able to sherpa data over USB 3.0 and 2.0, and contain a dual-lane display port channel. The patents suggest that future versions of the company’s laptops, desktops, and mobile devices will utilize the new USB technologies — and that future mobile devices may be able to output to HDMI without the need for an adapter. There is an additional patent schematic after the break. More →