Apple - page 63

Apple just announced its best June quarter ever for revenue and earnings in Apple’s history.

Highlights include:

• Almost 2.5 million Macs shipped — 41 percent growth. Highest Mac shipments ever. The Mac is back!
• 11 million iPods sold — 12 percent growth
• $7.46 billion revenue
• $1.07 billion profit

(Last year: $5.41 billion and $818 million profit)

And this is without recording any iPhone revenues, which are being deferred until the fourth quarter.

Webcast of the analyst conference call.
Highlights from the analyst call:

• App store: 900 apps; 25 million apps downloaded; 20 percent free; 90 percent below $10.
• iPhone 3G: 22 Countries. 1 million sold in first 3 days after launch. 20 more countries on Aug 22nd
• Future Product transition: Q4. “Can’t discuss today.”

Apple opened the first of two planned retail stores in Beijing, China over the weekend, at the Sanlitun retail complex. Enjoy our gallery of photos by several fine photographers. All images courtesy of Creative Commons or copyright the individual photographers.

Apple, Inc. is expected to report strong second quarter earnings after US markets close on Monday and the company will do so without recognizing a single iPhone sale, according to a Bloomberg report. Instead of including sales of first generation iPhones that came at the end of the second quarter before the release of the wildly successful iPhone 3G, the company will report an increase in earnings on rising sales of Macintosh computers and iPod media players alone.

“The Mac is the primary reason we own Apple shares,” said Michael Obuchowski, a portfolio manager at New York-based Altanes Investments LLC, which began buying Apple shares in 2006. “For several quarters, we’ve seen an incredible acceleration in Apple’s PC business.”

There could be even more good news ahead for Apple shareholders, who will undoubtedly receive another boost next quarter, when Apple tells the story of its hugely successful iPhone 3G release, which has nearly completely sold out in the United States, Germany and other worldwide locations in its first 10 days on the market.

Software engineer Satoshi Nakajima, the lead architect of Microsoft’s Windows 95, picked up a Mac for the first time two years ago.

He was so impressed, he says he’ll never touch a PC again.

Satoshi loves Apple products so much, he started a company in April, Big Canvas, to develop for Apple’s iPhone platform full-time.

“We have chosen iPhone as the platform to release our first product (for) several reasons,” explains his company’s website. “We love Apple products… You need love to be creative.”

Based in Bellevue, WA — right next to Microsoft’s home turf of Redmond — Satoshi spent nearly 14 years at Microsoft, serving as the software architect of Windows 95 and 98. He also oversaw the development of Internet Explorer 3.0 and 4.0. While at Microsoft, he developed the third largest portfolio of intellectual property of any employee at the company, according to his bio.

Last week, Satoshi released his company’s first iPhone application, Photoshare, a free, social networking app for sharing pictures with the iPhone.

Photoshare is like Flickr for iPhone photographers. The downloadable Photoshare app allows users to upload pictures to Photoshare’s website, and then share those pictures publicly or privately — without any required registration or the need for a computer.

We spoke with Satoshi about the pleasures of writing software for the iPhone SDK and got some of his thoughts about Apple’s UI, its distribution model for iPhone apps and the future of handheld communications.

The interview continues after the jump.

Apple is extending the subscriptions of its current MobileMe customers for 30 days at no charge, according to an email sent by the company today.

“The .Mac to MobileMe transition was a lot rockier than we had hoped but everything is now up and running,” Apple spokesman, Bill Evans, told Macworld. “We want to apologize to our loyal customers and express our appreciation for their patience by giving all current subscribers an automatic 30-day extension to their MobileMe subscription free of charge.”

MobileMe customers should see the extension reflected in their accounts “within the next few weeks,” according to Apple’s email.

Enterprise customers remain largely unimpressed with Apple’s efforts to promote the iPhone as a tool for business. While hordes of consumers worldwide are willing to stand in line for hours to buy one of the touch screen gadgets, business customers are proving a more wary audience. The disconnect could be a crucial indicator to the company’s future direction.

The shortcomings of Apple’s first generation configuration tool for the iPhone bear all the hallmarks of Apple’s long-standing lack of understanding for the needs of enterprise customers, according to eWeek. Problems with security and application delivery call into question the company’s ability to create an effective solution in-house that can serve the needs of its largest customers. As it stands, the iPhone might be effectively integrated into small business environments, but the tools as currently structured lack the security and remote reach large deployments require.

Apple is rumored to be coming out already – possibly this week – with fixes for Exchange support, which has been declared by some a complete mess. A whole host of features Windows Mobile users are used to seem to be missing or inadequate, according to a review in Mobility Today, and even Apple itself has backed away from its original claim that “”Push happens automatically, instantly, and continuously” via MobileMe, which Apple promotes as “Exchange for the rest of us.”

Apple’s simultaneous worldwide release of new hardware, a major firmware update, a complete overhaul of its web services product and a significant effort toward enterprise configuration must be applauded as a swing for the fences. And the fact that everything has not gone smoothly should come as no surprise. As ever, it will be interesting to watch where the company goes from here.

Apple filed suit against Florida-based computer maker Psystar on July 3rd, alleging copyright infringement, inducement of copyright infringement, trademark infringement and other legal claims. It seeks any profits earned by Psystar from sales of its Open Computer, triple damages for willful acts, a permanent injunction against the sale of the product and a recall of units already sold.

Despite a seemingly definitive ruling against Apple clone-makers in a landmark 1983 copyright decision, Psystar has lately continued selling what it calls “open source” computers with copies of OS X, while Psystar owners and managers admitted in public statements their knowledge of the existence of Apple’s software license agreement and its terms, according to the suit.

Legal experts speculate Psystar has almost no credible defense against the suit and believe this may truly be the end of Apple clones after the last major knock-off shop, Franklin Computers, closed its doors in the wake of the 1983 case.

Via CNet.

Apple reports over 10 million applications downloaded from the AppStore in its first weekend, according to a press release issued by the company today. There may be discord brewing between the company and developers of the applications being distributed in the AppStore, however, as blogger Bret Terpstra writes for The Unofficial Apple Weblog.

Many applications from the App Store are crashing frequently, according to Terpstra, and some veteran developers are pointing the finger at Apple, claiming crash logs indicate a “growing consensus that Apple has released a highly unstable “final” version of the 2.0 firmware.”

If it seems prices of the latest iPod and iPhone accessories are rising, you may have Apple’s licensing department to thank, according to a story in Popular Mechanics. Though the company is typically reticent to discuss the details of arrangements such as the one that allows some electronics manufacturers to place a “Made for iPod” designation on their products, managers and decision makers for both retailers and manufacturers indicate Apple’s licensing fees and specially made chips that allow gadgets to work with Apple gear can add 10% or more to the price consumers pay for an item.

Last year, Apple introduced a proprietary authentication chip that works like a silicon key to unlock streaming video functionality on iPhones and iPods and generally authorizes the devices to work with approved accessories. The “auth chip” meant third-party companies wanting to produce iPod-compatible gadgets first had to deal with Apple–the only company selling the chip. Previous-generation iPods could output video over a generic $2 iPod video cable, but new phones and iPods require officially licensed Apple cables–and these can cost up to $50, according to the report.

Apple’s contention is that its authentication technology and licensing protocols, which can entail auditors from Cupertino poring over a company’s books and records to ensure that Apple gets paid for every device sold, helps maintain high quality for products associated with the Apple brand. Some manufacturers complain, on the other hand, they must reduce the quality of their wares in order to pay Apple its share and still keep prices at levels that stimulate consumer demand.

Updated below – Apple CEO Steve Jobs pronounced the iPhone 3G’s worldwide reception “stunning,” according to AppleInsider.

Noting the 1 million phones sold in its “opening weekend” (as the lines between commerce and entertainment grow ever more blurred), Jobs trumpeted the fact that “It took 74 days to sell the first one million original iPhones, so the new iPhone 3G is clearly off to a great start.”

Of course, its availability in more than 20 countries helped iPhone 3G sales, whereas the original phone was first offered only in the United States, but consumers’ embrace of the new model is sure to heat up the smartphone market. The sales numbers are impressive by any measure, especially given widespread activation issues that slowed down the purchase process and caused much grumbling among opening weekend buyers.

Apple’s sales figures are the subject of some debate in the wake of the company’s press releases this morning, according to a post at Fortune‘s Apple blog. While sales at Apple retail outlets are counted at the register, sales to partner carriers such as AT&T are counted by the company when they leave the loading docks in Asia. “In other words, some of those 1 million iPhones recorded as sold by Apple (AAPL) may still be in transit,” says the Fortune report.

Also today, Piper Jaffray analyst Gene Munster put sales at around half the 1 million reported by Apple and said he thinks it will take two weeks or more to hit the 1 million served mark.

Apple confessed to problems making the transition from .Mac web services to its highly anticipated MobileMe product, according to MacWorld, but the service may be up and running this morning after yesterday’s rocky rollout.

A statement posted earlier today to the Apple website read “”The MobileMe transition is underway but is taking longer than expected. Please refer to the official System Status to the right for current information on the availability of MobileMe services. We apologize for any inconvenience.”

But as you can see from the screenshots below, we finally have a log-in page and access to our me domain. The servers are running very slow at this writing. Stay tuned for updates; your mileage may vary.

Access to the account page behind the following secure screen

Was met with a Loading wheel that I gave up on after 5 minutes

But I was able to get to my Gallery

Though not my mail. I have confidence Apple engineers will work out the kinks.

It’s iPhone launch day in the US and early reports from several sources indicate a scene of controlled chaos across the country as Apple Retail and AT&T employees work to satisfy the demands of people who must have a new phone today. It’s nothing like the mayhem that attended demand last summer when the first gen iPhone made its debut, but AT&T’s on-site activation requirement seems to be making the purchase of of a new iPhone much longer process than the 15 minutes touted earlier in the week as the time it would take to get in and out with a phone.

Steve Wozniak was quoted in MacWorld admitting gadget lust would keep him in line overnight down in San Jose to get a new phone this morning, but said,””A lot of the people I know just aren’t going to upgrade yet.”

I’ve been a gamer for a very long time. I distinctly remember my dad helping me to play one of the earliest Space Invader units by lifting me up (what with a diminutive version of your correspondent not being able to see the screen properly) and then pretty much instantly regretting it (what with me being rather heavier than he realized). I’ve devoured games on ZX Spectrums, Commodore 64s, BBC Micros, Amigas, PCs, Macs, and consoles from Atari, Nintendo, Sega, Microsoft and Sony. And although today’s gaming landscape is clearly significantly more conservative and homogenized than that of the 1980s or early 1990s, there are still many gems lurking amongst the dross.

It’s curious to see Apple again taking interest in games. Few will remember the disaster that was the Pippin, a joint production with Bandai that rightfully made #22 on a top 25 worst tech products of all-time list by PC World, and Macs have never really been at the forefront of gaming, with users typically forced to pick up two-year-old PC games at current PC-game prices.

With iPhone, there’s a feeling things might be different this time. Right from the start, Sega was extolling the virtues of the device, demoing a highly competent version of Super Monkey Ball, and reports suggest spec-wise that Apple’s hardware rivals Sony’s PSP and Nintendo’s DS, which are the only two mobile gaming platforms worth a damn. Also, Jobs claims a third of the first wave of applications on the AppStore will be games.

My concern is that the genius of Apple’s lack of physical controls for most applications (thereby enabling context-sensitive controls and keyboards) might be its undoing in the games world. Jailbroken iPhones offer emulators of classic consoles, but the lack of tactile controls renders them borderline unplayable, and although the iPhone’s accelerometer and touch-screen will force (some) developers to create unique and innovative products, there’s a real risk iPhone as a gaming platform will remain a seriously niche concern, by virtue of lacking a D-pad and other ‘standard’ controls.

Some might argue that iPhone’s unique controls can only be a good thing, using Nintendo’s Wii and DS consoles as ‘proof’. But while both of those devices have proved staggeringly popular, they offer alternatives to developers. Yes, you can wave the Wii remote around like a loony, or draw on the DS touchscreen, but more typical control methods are also catered for. And it’s pretty obvious that some developers try to shoehorn unwieldy control systems into games (a shocking number of DS games require hateful microphone-based controls at some point) on such consoles because they can. But with the iPhone, they will sometimes have to.

Looking at iPhone gaming demos to date, there’s already a split between games such as Super Monkey Ball using iPhone to fashion highly intuitive controls via tilting, and more traditional games being hamstrung, leading to having to ‘jolt’ your iPhone upwards to make a character jump. A quick glance around the web suggests I’m not alone in wishing iPhone catered for all, rather than those with an ‘accelerometer and tilting’ fetish. One Mac user created a mock-up of a PSX-style controller for iPhone, and the people over at icontrolpad.com (pictured right) have prototyped a device that almost turns iPhone into a PSP-style handheld console.

Unfortunately, any devices along these lines are likely to be limited to jailbroken iPhones—at least for the foreseeable. But here’s hoping Apple takes these ideas on board. For while I’m all for innovation and playing something new, it’d be a shame to restrict iPhone to certain types of games, simply by not giving developers access to a full range of controls, tactile or otherwise.

The AppStore went live this morning, included in the iTunes 7.7 release available through Software Update.

Though this is surely to change over time, only a handful of applications are available in the Applications pane of iTunes this morning. More than 500 titles are included in the initial launch, according to a piece in the New York Times, in which Steve Jobs is quoted, saying of the AppStore, “”We are not trying to be business partners [with developers].” Instead, he said, the goal is to “sell more iPhones.”

Twenty-five percent of the first 500 applications at the store will be free, according to Jobs. Of the commercial applications, 90 percent will be sold for $9.99 or less, he said in the Times article, adding that a third of the first wave of applications will be games.

As of this morning, if you already know of a game or application that is or should be in the AppStore, it may be available through a search by name.

Here’s another screenshot showing apps in the layout. It should also be noted that the AppStore is currently available only for your browsing pleasure. Until the iPhone 2.0 firmware is released (perhaps later today?), you won’t be able to download any applications to your iPhone or iPod Touch.

Apple’s web services product, formerly known as .Mac, becomes MobileMe tonight, sometime between 6pm and 12am Pacific Time. A major overhaul to the $100 per year service will let subscribers manage email, calendar and contacts, pushing new data and changes automatically to desktop, laptop and mobile devices. Photo sharing features and disk space on Apple’s webservers let members store and share large files.

Apple produced a handy guided tour video and staff writer David Chartier posted a comprehensive piece on the details for Ars Technica today.

Of the more than 25,000 developers  who applied to Apple’s iPhone developers program, 4,000 were admitted, according to a story in Fortune. Apple set a July 7 deadline for those accepted developers to submit their applications for inclusion in the inaugural launch of the iPhone AppStore, expected to coincide with the worldwide debut of the iPhone 3G in two days.

We bring you now 12 interesting Apps to look for. Descriptions and screenshots after the jump.

Marko Karppinen, principal at MK&C, an eight-person software development studio in Helsinki, Finland, wrote a post on the company blog today claiming Apple responded to a phishing expedition by someone with a yahoo.com email address and turned over Karppinen’s Apple ID password, compromising his personal details, .Mac account information and Apple Store profile data.

Apple’s Developer Relations department did not respond to requests for comment.

J. Douglas Field, Segway CTO

We’re not sure if Steve Wozniak had a hand in the negotiations, but Apple has lured Doug Field, Segway’s chief technical officer, to join Jonathan Ivie’s design team as Vice President of Product Design, according to a post Friday on the SegwayChat forum.

As blogger Jason D. O’Grady notes, writing for ZD Net the move is curious, given Field’s background as an engineer and Segway’s not-so-glorious reputation for product design. Asked about his reaction to the Segway’s original design, Steve Jobs famously said, “I think it sucks.”

Here’s hoping Field gets a better grade from Jobs at his first Apple executive review.

Photo via Fortune

My AT&T account tells me I’ll be eligible for a hardware upgrade on August 16th. I’ll probably wait at least until then to pick up a new iPhone 3G. And something tells me I won’t be disappointed.

Then again, I don’t have a sustainability agenda to push, as do a quintet of twenty-somethings calling themselves alternatively TheWhoFarm and Waiting for Apples, who began queuing up in front of the Apple Store on 5th Avenue in Manhattan on Friday. The group is going for the Guinness Book of World’s Records entry for “longest time waiting in line to buy something,” according to Fortune, and hopes to persuade the next President of the United States to transform the White House’s 17-acre lawn into an organic farm.

It’s not clear what effect the group’s affinity for Apple may have on the company’s efforts to gain acceptance with Enterprise users.

Image by Gail Ahlers

Two Apple shareholders have filed a class-action lawsuit against present and former Apple officials including Steve Jobs and four members of the Board of Directors, as well as former CFO Fred Anderson and former General Counsel Nancy Heinen. The lawsuit charges Apple officials with fraud in connection with the company’s practice of backdating stock options, the subject of an SEC investigation in 2007, in which the regulatory agency cleared Jobs of any wrongdoing.

That’s not enough for Plaintiffs Martin Vogel and Kenneth Mahoney, according to a story published by Information Week, which details the allegations against Jobs and company. Vogel and Mahoney are seeking to recover losses stemming from a drop in Apple’s share price that reduced the company’s market cap by over $7 billion in the wake of Jobs admitting to “irregularities” in the granting of options to company executives and to the existence of an internal investigation into the matter in 2006.

Image via AppleInsider

By any measure of event marketing, Apple’s rollout of its next-gen iPhone 3G has already been a success, with stories having run in every major media outlet, from Time to Fortune to BusinessWeek, CNN, The New York Times as well as on Internet blog sites large and small, covering the phone’s worldwide debut on July 11.

Both Apple and AT&T, the iPhone’s exclusive US wireless carrier and distribution partner, have posted videos hoping to get customers iReady for the big day and, according to a story in Fortune, reporter Philip Elmer-DeWitt says their approaches couldn’t be more different.

The Apple video, shot in the company’s signature stark, simple style, calmly lays out all the feature-based reasons you should believe that owning anything less than an iPhone may leave you unprepared to face the challenges of living in the modern world. As Elmer-DeWitt writes, “It’s hard to watch it to the end and not harbor iPhone 3G lust.”

At&T’s video, on the other hand, calls to mind the chaos and frustration likely to attend your effort to get your hands on one of the new phones on launch day, recommending that you may well want to visit an AT&T store in advance of July 11 to get your papers in order and your background check, uh, credit check out of the way to minimize hassles and delay when you come back to get the phone and have it activated.

As the countdown to launch day nears, more and more people are likely to be liveblogging the event and the pent-up demand for the device will continue to build. Some, however, are thinking more along the lines of Popular Delusions and the Madness of Crowds, like Dameon Welch-Abernathy at The PhoneBoy Blog, who says, “Get iReady to be iScrewed.”

Check out this gallery of gorgeous photographs of the recently opened Apple Store in Sydney, Australia by photographer Christopher Chan. Born in Kuala Lumpur, the 34 year-old Chan keeps his day job as a Sydney-based Cisco Business Operations Manager when he’s not traveling the world shooting landscapes, architectural and other travel-related subjects. He uses a Canon 30D camera, loves his Canon EF-S 10-22mm lens the most, and works on a 15″ Macbook Pro running Mac OS X 10.5.3 and Aperture 2.1.

Hit the jump for his beautiful pix.

Ahead of Apple’s 3rd Quarter earnings report due later this month, fans of the Cupertino, CA computer company have reason to believe Big Mo is on their team, according to reporter Charles Jade at Ars Technica. Citing information available from the web metrics firm Net Applications, Jade reports significant increases in market share for both Mac OS X and Apple’s Safari web browser over the past year. Based on recent trends, the percentage of Mac OS X users should break the 8% mark in July, having gained nearly 2 full percentage points in the past year. Intel Macs posted gains as a percentage of Macs in use as well, possibly accounting for much of the reasoning behind Apple’s decison to make its Snow Leopard OS update, due in the spring, an Intel-only affair.

Apple’s chosen wireless carrier for the United States revealed pricing details for the iPhone 3G models, set to debut on July 11, according to information posted to the company’s website. New customers signing a two year service contract with the Dallas-based phone company can purchase the new phones for $199 and $299 for the 8GB and 16GB models respectively. Current AT&T customers who are eligible for an upgrade will also be able to purchase at the fully subsidized pricing while those not eligible for an upgrade will pay $399 and $499 for the two models. In typically cryptic AT&T style, the company’s upgrade eligibility requirements are not made public but only to logged in users requesting information specific to their account. The company’s generic message on upgrades reads “Device offers are made available from time to time based on a number of factors: service tenure, spending levels, payment history, usage practices and other factors,” though existing customers nearing the end of a two-year service contract cycle will presumably be able to purchase a new iPhone at the fully subsidized pricing with a commitment to a new two year contract.

In a somewhat puzzling development, AT&T issued a statement today saying it will sell the new phones “in the future” without a service contract for $599 for the 8GB phone and $699 for the 16GB model. Previously, neither Apple nor AT&T had indicated any intention to make the phones available without a service contract. Customers seeking to purchase phones on and near the July 11 launch date will be required to activate AT&T service at either an Apple store or an AT&T outlet, unlike the original iPhones released one year ago, which users could activate for service from their home computers. Existing AT&T customers will pay an $18 activation fee to get service on new iPhones; new customers will pay $36 for service activation.

Photo by Peter Payne

The Naked Bikers, a global protest vehicle for raising oil dependency awareness, rode through London on a sunny day in June. Photographer Peter Payne’s arresting image at panoramas.dk shows the stunning visual capabilities of QTVR, Apple’s 360-degree and CubicVR photo viewing technology.