NEWS: iPhone 4 and iPod Touch
Monday, October 18, 2010
Apple's Steve Jobs slams Google, RIM, rival tablet makers.
"As most of you know," Jobs said on Monday's conference call, "I don't usually participate in earnings calls since you're all in such capable hands. But I couldn't help dropping by for our first $20 billion quarter. I'd like to chat about a few things and stay for the Q and A."
RIM Shot
"First, let me discuss iPhone. We sold 13.1 million iPhones in the quarter, a 91% unit growth over year ago and way ahead of IDC's estimate of 64% growth for global smartphone market.
"It handily beat RIM's 12.1 million Blackberries sold in their last quarter. We've now passed RIM. I don't see them catching up with us in the foreseeable future. It will be a challenge for them to create a mobile software platform and convince developers to support a third platform."
Google's fragmented Android
"What about Google? Eric Schmidt said they're activating 200,000 devices per day and 97,000 apps in their store. Apple activating 275,000 iOS devices a day on average for the last 30 days with a peak of 300,000 per day on some of those. There's 300,000 apps on App Store.
"Unfortunately there's no solid data on how many Android phones are shipped each quarter. We hope manufacturers will start reporting it, but it's not the case now.
"We await to see if iPhone or Android was the winner in most recent quarter. Google loves to characterize Android as open and iPhone as closed. We see this disingenuous and clouding the difference.
"The first thing we think of when we hear open is Windows, which is available on a lot of devices. Unlike Windows, where PCs have the same interface, Android is very fragmented. HTC and Motorola install proprietary user interfaces to differentiate themselves. The user left to figure it out.
"Compare this to iPhone where every handset works the same. Twitter client TwitterDeck [sic] recently launched their Android app, and had to contend with 100 different versions of software on 244 different handsets. That's a daunting challenge.
"Many Android apps work only on selected handsets, or selected Android versions. This is for handsets that shipped 12 months ago. Compare with iPhone, where are two versions to test against, the current and most recent predecessor."
Android stores fragmenting
"There will be at least four app stores on Android which customers must search among to find the app they want and developers will have to work with. This will be a mess for users and developers. Contrast this with Apple's integrated app store. Has three times as many apps and offers developers one-stop shopping and get paid swiftly.
"Even if Google was right and the real issue was closed vs open, it's worth remembering open doesn't always win. Look at PlaysForSure. Even Microsoft finally abandoned this open strategy in favor of copying Apple's integrated approach with the Zune, leaving their OEMs empty-handed.
"In reality we think the open vs closed argument is just a smokescreen to try and hide the real issue which is: what's best for the customer, fragmented or integrated? We think Android is very fragmented and becoming more fragmented by the day. We prefer integrated so the user doesn't have to be the systems integrator.
"We think this is a huge strength of our approach vs Google's. We think integrated will trump fragmented every time. We think developers will be more innovative by focusing on one handset, rather than testing against a lot of hardware. No matter how many times Google tries to characterize it as closed, we are confident iPhone will triumph."
The avalanche of 7 inch tablets
Jobs then addressed the "avalanche of tablets poised to enter the market," noting that there are really "only a handful of credible entrants. They use 7 inch screens rather than iPad's near 10 inch display.
Pointing out that "screen measurements diagonal," Jobs explained that a 7 inch screen was just 45% as large as the iPad. "This size isn't sufficient to create great tablet apps," Jobs said, extinguishing any hopes for a smaller sized iPad.
Jobs then quipped that small form-factor tablets will need to ship with sandpaper so users can file down their fingers to the point where they can hit smaller targets on the screen. Elements can only get so small before users can't perform these types of touch and pinch gestures, Jobs insisted.
Noting that all tablet users already have a mobile smartphone, Jobs indicated that tablets need to be big enough to be differentiated from mobile devices in terms of features. "No tablet can compete with mobility of a smartphone. Pocket size tablets are tweeners," Jobs said; too big for a smartphone and not big enough to work well as a tablet.
Tablets running Android against Google's recommendation
"Nearly all of these tablets use Android. But even Google is saying don't use Froyo [the current release of Android OS], and instead to wait to use next years' version. What does it mean when a software maker says not to use their release and you use it anyway?
The new crop of tablets will have near zero apps.
Finally, Jobs noted that "our potential competitors [in tablets] are having a tough time coming close to iPad's pricing. iPad incorporates everything we've learned about building high value products. We create our own A4 chip, software, battery chemistry, enclosure, everything. This results in an incredible product at a great price. The proof will be in the pricing of our competitors' products, which will offer less for more.
"We think the 7 inch tablets will be dead on arrival, and manufacturers will realize they're too small and abandon them next year. They'll then increase the size, abandoning the customers and developers who bought into the smaller format," Jobs predicted.
Jobs stayed to provide answers to analysts' questions, joining chief operations officer Tim Cook and chief financial officer Peter Oppenheimer. Note that Jobs' comments above are in some cases paraphrased, based on rapid transcript notes made AppleInsider's transcriber and by the author.
Apple Reports Record Quarter – 20.34 Billion Record
record revenue of $20.34 billion and net quarterly profit of $4.31
billion, or $4.64 per diluted share. That works out to be Apple's best
quarter ever and they are offering guidance higher still for the next
quarter. Apple also reported they sold 14.1 million iPhones
representing a 91% increase over last years Q4. For those saying Apple
is losing momentum, the numbers will have to disagree.
Also notable was the 3.89 million macs sold in Q4 representing 27%
unit growth and 4.19 million iPads sold as well. As for the iPod it
was the only category that didn't far as well declining 11% to 9.05
million sold. Apple has grown quarter after quarter and continues to
show strong momentum going into the the holiday season. Read on for
more analysis of Apple's earnings.
There are some other very notable points about Apple's earnings
announcement. Apple shared they are growing internationally as well
with 57% of earnings coming from International sales. It appears
Apple's International push with products is paying off. Another
fascinating thing to pay attention to is that Apple sold more iPads
them Macs. There has been much discussion around what the impact of
the iPad on the Mac would be and so far both are growing steadily.
However the point that Apple sold more iPads them Macs does allude
that not only is the tablet here to stay but that it may also
represent a shift in computing.
Another interesting point is that Apple shared that their 14.1 million
iPhones sold beat RIM's 12.1 for the same quarter. Apple's momentum
continues in the smartphone category and is showing no signs of
slowing down. It is conceivable that the iPhone taking RIM's position
as the market share leader for Smart Phones is well within reach.
Apple is yet to have what is always considered their strongest quarter
which takes place during the holiday season. I'd expect record numbers
again from Apple with their first quarter in 2011 which may set the
stage for a $100 billion dollar year for Apple.
Friday, October 1, 2010
Apple TV would 'jeopardize' shows
Warner CEO Jeff Bewkes said that 99-cent rentals of his company's
television shows makes no sense as far as the bottom line goes.
"How can you justify renting your first-run TV shows individually for
99 cents an episode," Bewkes said, according to the Hollywood
Reporter. He added that doing so could "jeopardize the sale of the
same shows as a series to branded networks that pay hundreds of
millions of dollars and make those shows available to loyal viewers
for free."
Time Warner isn't a slouch in the television business. Its
programming, including shows from subsidiaries HBO, CW, and Turner
Broadcasting, could benefit the Apple TV in a big way. Regardless,
Bewkes said that for the Apple TV to even come close to attracting
media companies, it will need to offer two key features.
"They must provide consumers with a superior TV experience, and they
must either support or improve the overall economics that funds and
creates the programming in the first place," he said.
Bewkes' comments echo those made last week by NBC Universal CEO Jeff Zucker.
Speaking at the Goldman Sachs investor conference, Zucker said that
his decision to keep NBC content off the Apple TV was based in his
perception that 99-cent rentals would "devalue" his company's content.
When he first announced the Apple TV at the beginning of September,
Steve Jobs acknowledged that his company was having trouble coaxing
studios and networks to join the rental program. But over time, Jobs
said, he expects that they "will see the light and get on board with
us."
The Apple TV is a set-top box that streams rental movies and TV shows
and includes iTunes, Netflix, and Flickr support. According to Apple's
Web store, the $99 Apple TV will ship to customers in two to three
weeks. Apple has already started shipping devices to those who
preordered the set-top box.
Thursday, September 30, 2010
GreenPoisOn Jailbreak for iOS 4.1 Fake
release the GreenPoisOn jailbreak for their iPhone 4 or iPod Touch 4G
and also the unlock tool for iOS 4.1. News today though was that
because the Team are working so hard on the jailbreak the unlock tool
may be delayed further. However that's good news for those wanting the
jailbreak as soon as possible.
However we now hear that because they know that people are so avidly
awaiting the jailbreak, some spammers are using the situation and that
a spam campaign has begun to circulate which pushes a Trojan Virus
with a fake GreenPoisOn tool, according to MyGadgetNews, sourced from
Kapersky Labs.
People that try to use the fake GreenPoisOn jailbreak will actually be
downloading a Trojan Virus which could steal passwords, usernames and
bank information from their computers. Apparently other fake jailbreak
sites for iOS 4.1 are also springing up so you must be careful what
you open on your computer.
Presently there is no working jailbreak for iOS 4.1 or 4.0.2 available
for the iPhone 4 so if you find something that looks promising make
sure to check it out as a legitimate source first. We'll try to keep
you informed when the legit jailbreak for iOS 4.1 is available. For
more on this go to mygadgetnews.com. Why not send us your comments
about jailbreaking iOS 4.1.
Thursday, September 23, 2010
iPad, Apple's 'Mac of the masses'
"We believe the iPad represents a meaningful product category for Apple as a secondary computing device for those who already have a primary computer, a primary device for those who could not previously afford a Mac, and the first Apple product that will be a success in the enterprise," he wrote. "We see the iPad as the Mac for the masses."
His prediction is based on three factors: increased supply and expanded distribution channels, international rollout and adoption in price-sensitive markets, and uptake in the enterprise sector.
Munster said that increased presence of the iPad in retail stores will help to drive sales. Best Buy recently announced that it will expand iPad sales to all its U.S. stores this week, while Target is rumored to sell the device beginning next month.
Earlier this month, the iPad launched in China and 5 Latin American countries. In these "price-sensitive markets," the iPad is more likely to be used as a primary computing device by people who could not previously afford a Mac, Munster said.
Finally, he said the iPad has the potential to take the largest percentage of its sales from enterprise customers. He noted that the company revealed in June that more than 50 percent of the Fortune 100 are deploying or testing the iPad.
Munster believes Apple will control 94 percent o the worldwide tablet market in calendar year 2010, with 10.7 million of the total 11.3 million tablet sales for the year. In the future, he sees Android as the iPad's primary competition, as the next 3.0 release, codenamed "Gingerbread," is said to support tablet devices.
Piper Jaffray has increased its price target for AAPL stock to $390, with revenue estimates increased from $78.96 billion to $83.13 billion. The calendar year 2011 earnings per share estimate has also been increased from $16.87 to $17.75.