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The Dawn of Apple’s Dominance: Digital Hub Strategy, Revisited.

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Steve Jobs maps out his digital hub strategy in 2001.
Steve Jobs maps out his digital hub strategy in 2001.
Photo: Apple

This is my last chance to say something before the great and terrible Steve holds his tablet aloft (and even then, rumormongers might have beaten him to the punch), so let me give you a bit of a long-view perspective, something usually left out when we’re discussing whether we’ll see a 10-inch or 11-inch LCD panel on the device.

You see, I’ve been thinking a lot about Apple and its insane run of success over the last nine years. Consider this: In 2001, Apple’s revenue was about $6.5 billion. In 2009, that revenue was $42.3 billion. Essentially, the company grew by more than 550 percent in eight years.

How exactly is that possible? Was it the great products? Partly. Great leadership? Sure. Killer marketing? No question. But more than all of those combined, the secret to Apple’s success was that it defined and followed the right strategy and the right era. Steve Jobs is king of the world right now because he hit on the idea for the digital hub.

Apple Q1 Results: It’s Another Blockbuster With More Sales, More Revenues, More Profits

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Apple’s first quarter of 2010 was another blockbuster, and Steve Jobs is talking about a major new product this week that he’s “really excited about.”

In financial results reported Monday, Apple says it earned “all-time highest revenues and profits.” The company made revenues of $15.68 billion and profits of $3.38 billion on sales of 3.36 million Macs and 8.7 million iPhones.

“If you annualize our quarterly revenue, it’s surprising that Apple is now a $50+ billion company,” said Steve Jobs, Apple’s CEO, in a statement. “The new products we are planning to release this year are very strong, starting this week with a major new product that we’re really excited about.”

Everything except sales of iPods (which are down 8%) is in record territory   — iPhone sales are up 100% and Macs up 33%.

Here are the highlights:

* 3.36 million Macs sold (33% unit increase over year-ago quarter).

* 8.7 million iPhones sold (100% unit growth).

* 21 million iPods sold (8% unit decline).

* $15.68 billion revenue ($11.88 billion in the year-ago quarter).

* $3.38 billion net quarterly profit, or $3.67 per diluted share. ($2.26 billion, or $2.50 per diluted share, last year).

* 40.9% gross margin was (37.9 percent in the year-ago quarter).

* International sales accounted for 58 percent of revenue.

Apple’s a money machine. The 41% gross margin is unbelievable, especially in a recession. Competitors atre lucky to make 5% margins.

It’s also worth noting that a big bump in revenue came from Apple’s adoption of new accounting practices. Revenue from sales of iPhones and Apple TVs are now recognized immediately, rather than being spread over two years. Apple used subscription accounting for iPhones and Apple TVs so that it could provide free software upgrades without running afoul of accounting rules.

WSJ: The Apple Tablet is All About Books. No, Games! No, Family Time!

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We’re down to a week until Steve Jobs reveals the latest something or other from Apple at San Francisco’s Yerba Buena Arts Center. Most believe it to be some manner of tablet, of course (which the rounded corners in the above teaser image support), or a widget, gadget, or even a doodad.

With such a major whatsit being announced one week from today, speculation is running rampant. The Wall Street Journal periodical publication today revealed an exclusive, courtesy of an anonymous informant: Apple’s tablet will be amazing for reading books playing games reading magazines communicating with your family video-conferencing ALL OF THE ABOVE!

In a breathless run-down, writers Yukari Iwatani Kane and Ethan Smith essentially list off nerds’ every dream feature for the magical device, citing partnerships with the New York Times, EA, Conde Nast, TV channels, the launch of web-based iTunes and, AHEM, Microsoft’s Bing as clear evidence that the Cupertino Craftsmen will be transforming every industry they don’t already dominate.

And the weirdest thing about it? None of it seems implausible. Not one hyperbolic assertion. If Apple’s doing something beyond the iPhone, it should be the world’s most killer video-watching, game-playing, web-surfing, video-chatting, computer-displacing new platform ever conceived. It should actually be beyond what most of us can dream of. I’m just wondering how Steve’s going to introduce it. “Today, we have 17 new revolutionary products to introduce. But they’re all one product. It’s a washer, a dryer, a thimble, a salad, a painkiller, a television, a TV network, a shoelace, a hamster, a handkerchief, a fax machine, a zipper, a bicycle, a foie gras, a US Senator, a secret lover, and your grandmother’s meat loaf. We call it iPad.”

It’s going to be a wild one on Wednesday, folks. Keep those rumors flying.

Wall Street Journal Via Engadget

Tablet speculation: Apple’s 2009 eye-control tech acquisition?

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httpvhd://www.youtube.com/watch?v=yIf_09tVX5s&feature=player_embedded

In nine days, Steve Jobs will walk on stage, shout “Bam!” and unveil the Apple Tablet. That much we pretty much know. But with rumors that the Tablet will require a steep learning curve, evidence is mounting that the Tablet won’t interface with us like a mere tablet PC or an iPhone, but instead set an entirely new paradigm.

One interesting bit of speculation on what kind of new interface we might expect comes way of Roger Åberg, who points out an interesting new interface technology Apple has been pursuing over the last couple of years, eye control, which could allow Tablet users to do everything from scroll, navigate, launch apps and even type through blinks, motion and long dwelling gazes.

Apple Gear Shines in Fight Against Global Poverty

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When Shawn Ahmed travels to places such as Bangladesh to fight poverty he counts on iPhones and Macs to help him do battle.

Ahmed is the founder of a one-man global relief effort he calls the Uncultured Project and is using technology and social media in inventive ways to engage people across the globe in their common humanity.

In partnership with the Save the Children Foundation and USAID, Ahmed went last summer to a cyclone devastated village in Galachipa, Bangladesh to distribute non-food relief items to victims of the disaster. He provided individual donors to Uncultured Project real-time receipts for their generosity using his iPhone and TwitPic.

As seen in the clip above, Ahmed used his iPhone to show villagers in another Bangladeshi community videos made by the people in the west who helped bring safe, clean drinking water to their lives. “This is not a charity,” Ahmed said, “it’s an experiment in community.”

The 28 year-old native of Toronto, Canada quit his scholarship graduate studies at Notre Dame University after being inspired by Dr. Jeffery Sachs (author of The End of Poverty) to try and make the world a better place — one meaningful difference at a time.

“I’ve also been using the iPhone to report real-time in the field,” Ahmed said in an email. He makes extensive use of Twitter and YouTube to break down the distance between his supporters and the communities they support. Connecting to them with his iPhone, Ahmed said, “I hold votes on how I should help people in Bangladesh. Voting has led [to] school supply distributions to orphans and much more. And, of course, all my videos are edited on a MacBook.”

The Uncultured Project’s YouTube channel just went over 10,000 subscribers and Ahmed is hopeful for the prospects of his unpaid, unemployed, uncultured journey to help the poorest of the poor: “It’s about inspiring others to believe that we can be the generation that ends extreme poverty.”

Report: Apple Tablet To Support Multiple Carriers – Including Verizon

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Verizon Wireless, which has belittled the iPhone in ads for the carrier’s Droid smartphone, will be one of multiple carriers for Apple’s long-awaited tablet device, an analyst announced. “Verizon and others,” said Broadpoint AmTech’s Brian Marshall.

“Definitely Verizon. I’ve been told that’s a certainty,” he added, referring to unnamed sources.

Analyst: Apple, Verizon Hit CDMA iPhone Pricing Snag

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The iPhone 3GS. Creative Commons-licensed photo by Fr3d: http://www.flickr.com/photos/fr3d/2660915827/
Has evidence of an iPhone 3GS successor been found?

A potential deal to bring the iPhone to Verizon’s CDMA network later this year may have hit a snag over pricing, one analyst said Tuesday. An iPhone that works on CDMA networks could appear by the middle of 2010, according to UBS.

“We believe a CDMA iPhone is also in the works,” analyst Maynard J. Um told investors. However, “Verizon Wireless and Apple may currently be apart on pricing,” he wrote. Apple receives an average of $700 per iPhone from AT&T, while Verizon pays $450 for the Droid, made by Motorola, estimates say.

Apple G4s Morph Into Trippy Microchip Table

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This bang-whiz creation is the brainchild of Justin Adler plus the handiwork of  artist/costume maker/prop designer extraordinaire Ted Southern.

It’s the innards of two Apple G4s, plus a graphic card, turned into a the kind of table that will make any night feel like was-there-something-in-my drink? night, if the promo video is anything to go by.

Sure, it doesn’t have the cool linearity of the iPod table, but it’s better than the scrap heap.

CES Promises Big-Ass TVs, Tablets Galore and Hordes of iPhone App Developers

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The giant Consumer Electronics Show in Las Vegas later this week will be all about tablets, eBook readers and 3D TVs. But of primary interest to Apple followers will be the big gathering of iPhone App developers.

More than 100 iPhone developers and accessory makers will exhibit at the iLounge Developer’s Pavilion, up 150% from numbers announced in July.