Federico Viticci

10873 posts on MacStories since April 2009

Federico is the founder and Editor-in-Chief of MacStories, where he writes about Apple with a focus on apps, developers, iPad, and iOS productivity. He founded MacStories in April 2009 and has been writing about Apple since. Federico is also the co-host of AppStories, a weekly podcast exploring the world of apps, Unwind, a fun exploration of media and more, and NPC: Next Portable Console, a show about portable gaming and the handheld revolution.

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Apple Q4 2011 Results: $28.27 Billion Revenue, 17.07 Million iPhones, 11.12 Million iPads, 4.89 Million Macs Sold

Apple has just posted their Q4 2011 financial results. The company posted record-breaking revenue of $28.27 billion, with 11.12 million iPads, 17.07 million iPhones and 4.89 million Macs sold. The company posted quarterly net profit of $6.62 billion, or $7.05 per diluted share. iPhone represented a 21 percent unit growth over the year-ago quarter; iPod sales are down 27 percent from the year-ago quarter, but Apple reported the best iPad quarter to date with over 11 million units sold and a 166% increase over the year-ago quarter. For the next quarter, Apple set guidance at revenue of about $37 billion and diluted earnings per share of about $9.30.

Estimates and Previous Quarters

Wall Street consensus’ estimate was earnings of $7.28 per share and revenue of $29.45 billion; independent analysts expected earnings per share of $9.07 and $33.47 billion revenue. In Q3 2011, Apple said they expected revenue of about $25 billion and diluted earnings per share of about $5.50 in the fourth fiscal quarter of 2011.

In Q3 2011, the company posted record-breaking revenue of $28.57 billion, with 9.25 million iPads, 20.34 million iPhones and 3.95 million Macs sold.. In the year-ago quarter, Apple posted revenue of $20.34 billion and net quarterly profit of $4.31 billion. In Q4 2010, the company sold 3.89 million Macs, 14.1 million iPhones and 4.19 million iPads, which began selling during the quarter.

Q4 2011 Recap

Apple’s fourth fiscal quarter, which ended on September 25th, saw the release of updated MacBook Air and Mac mini models, OS X Lion on the Mac App Store and, later, on USB drive, as well as a new iMac for the educational market and a new Thunderbolt Display. The company was initially expected to unveil a new iPhone in September, but a media event took place in Cupertino on October 4th, nine days after the quarter ended. iPhone 4S sales numbers will be included in Apple’s Q1 2012, but the company has already announced over four million iPhone 4S units have been sold in the first weekend of availability.

As for the Mac, the MacBook Air is widely believed to have become the crown jewel of Apple’s portable business (which no longer includes the white MacBook, discontinued in July) that, alongside Lion, was expected to boost Mac sales in the September quarter.

On August 24th, Steve Jobs resigned as CEO of Apple, and Tim Cook was elected CEO of the company. Steve Jobs passed away on October 5th.

On October 4th, Apple also announced over 6 million copies of Lion had been downloaded through the Mac App Store since July 20th (when the operating system went on sale), with Mac users approaching 60 million worldwide.

Q4 2011 Earnings Call

Apple will provide a live audio feed of its Q4 2011 conference call at 2:00 PM Pacific, and we’ll update this story with the conference highlights. Full press release is embedded after the break.

Notes from the call

  • Tim Cook: Steve Jobs’ spirit will always be the foundation of Apple.
  • New record sales for Mac and iPad in the September quarter.

  • Mac sales increased strongly in each operating segment.

  • iPod touch continues to account for half of all iPods sold.

  • iPhone sales double in Asia Pacific year-over-year.

- Ended quarter with about 2.5 million iPads in channel inventory.

  • 92% of Fortune 500 testing or deploying iPad.
  • 500,000 apps available in the App Store. Expanded the App Store to 123 countries in the September quarter.

  • - 30 new retail stores opened in the quarter, 21 internationally.

    • $3.6 billion revenue from Apple retail stores.

    - 77.5 million visitors in Apple retail stores in the quarter.

    • Average revenue per store is $10.7 million.
  • Apple has $81.6 billion in cash available.

  • Tim: We’re confident that we’ll have a large supply for the 4S in holiday quarter and set an all-time record for iPhone this quarter.

  • Tim: Progress in China has been amazing: Greater China revenue 2% in FY09; 12% in FY11. Fastest growing major region. $4.5 billion in revenue from China in September quarter.

  • Apple placing additional focus on other promising areas: Brazil, Russia, Middle East. There are several of these markets where Apple hasn’t been historically strong.

  • Tim: China – the sky’s the limit there.

  • Tim: As iPad competitors came to the market, our share went up.

  • Oppenheimer: Pervasive iPhone rumors had a definite negative impact on Apple’s business.

  • 40 million iPads sold on a cumulative basis.

  • Tim on iPhone 4S launch (4 million units) Vs. iPhone 4 launch (1.7 million units) last year: “That’s the mother of all uplifts”.

  • Tim: Number of people using Siri already is amazing. We see this as a profound innovation. Over time  many, many people will use Siri in a substantial way.

  • Tim: We spend a lot of time and money and resource in coming up with incredible innovations. And we don’t like when someone else takes those.

  • Tim: We still see iPhone 3GS and iPhone 4 as incredible products.

  • iPad available in 90 countries.

  • Tim: We are in the main countries with iPad.

  • Tim: Everything we’re doing in the United States, we’re doing in China.

  • Tim: Cannibalization of PC market happening in two ways. Some people choose to buy an iPad over a Mac: a materially larger number of people buying an iPad instead of PC.

  • Tim: I’m not religious about holding cash or not holding it.

  • Tim: We could not be happier with our position in the tablet market. We have some incredible things in the pipeline.

  • Graphical Visualization

    We have compiled a series of graphs and charts to offer a graphical visualization of Apple’s third quarter. Apple’s Q4 2011 data summary is available here.

     

    Read more


    Fantastical 1.1 Brings Editing, Deleting, Notes and Full iCloud Support

    With the release of the iPhone 4S and Siri, Apple is putting much focus on natural language input and the concept of “personal assistant”, a technology the company first explored almost two decades ago, which was impossible to implement until today. With faster processing power, persistent Internet connections and better voice recognition, Siri is perhaps the most impressive feature of the iPhone 4S and one that Apple will undoubtedly promote heavily in the next months.

    On the Mac, of course, the situation is quite different. Whilst one of the new functionalities of Siri on the iPhone is being able to create and schedule calendar events, on OS X we’ve had calendar apps with natural language support for quite some time, such as Fantastical and QuickCal. And today Fantastical, which I first reviewed here, has received a major update that adds two of the most requested features: event editing and deleting.

    With Fantastical 1.1, you can edit and delete events without jumping to your main calendar app, like iCal. Now, instead of having to launch iCal to make edits to something you entered through Fantastical, you can simply double-click on an event to start modifying it in a separate popup window. The interface is the same you already know for calendar events; you can also delete an event and add notes, which will be synced across all your devices and, if configured, iCloud. Option-double-clicking an event still opens it in your favorite calendar app – remember, Fantastical supports BusyCal as well – and anchor mode can now be toggled with a keyboard shortcut.

    Another big improvement in Fantastical 1.1 is full iCloud support. The app already supported iCloud calendars, but now that Apple’s service is public the app has been specifically optimized to take advantage of its new push technology for calendars and events. And because Fantastical features direct CalDAV integration, everything you enter in the app will be immediately synced back to the cloud, without having to open iCal (or letting it run open in the background). In my tests, iCloud integration has been extremely reliable, allowing me to enter an event (or make edits) in Fantastical and see the results appear in real-time on iCloud.com and all my iOS devices.

    Fantastical was already a great app, and now that it’s gained editing, deleting and notes it really can be used as a calendar replacement, which thanks to natural language input will also act as your personal “calendar assistant”. Fantastical is available at $19.99 on the Mac App Store.


    iPhone 4S Sales Now Reservation-Only At Retail Stores In US and Canada

    iPhone 4S Sales Now Reservation-Only At Retail Stores In US and Canada

    MacRumors reports Apple has updated its website for customers in the US and Canada, noting that the iPhone 4S is only available for in-store reservation. On the other hand, European stores such as the UK one still report walk-in purchases on a first-come, first-served basis are available.

    Apple has updated its ”how to buy” page for the iPhone 4S to note that Apple retail stores in the United States and Canada are now selling the device on a reservation-only basis. Customers will need to visit Apple’s site after 9:00 PM each evening to reserve a phone for the following day.

    In the UK, however, walk-in purchases are available for iPhone 4S on contract, not unlocked devices sold SIM-free. This particular measure has been likely put in place to avoid the long lines of grey market buyers that characterized the iPhone 4 launch last year; in the US and Canada, bigger markets for Apple than other launch countries of the iPhone 4S, reservation-only means Apple is perhaps trying to avoid the long lines and disappointed customers of last year, whilst retaining a retail distribution channel (which grants customers a free Personal Setup session with an Apple employee) at the same time. It’s very likely that this “restriction” will fade alongside Apple’s initial launch window (Apple also had to ramp up production of the 4S for 22 more countries on October 28th) and that remaining stock at the end of the day could be distributed to walk-in purchasers.

    Earlier today, Apple announced over 4 million iPhone 4S units were sold during the first weekend, making the iPhone 4S the most successful iPhone launch in Apple’s history.

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    Adobe Releases Adobe Reader for iOS

    Adobe today released its popular Adobe Reader PDF reading application for iOS devices; the software, available for free on the App Store, runs natively on the iPhone and iPad as a universal app. Back in August, Adobe released CreatePDF for iOS, a utility to turn a variety of documents into Reader-compatible PDF files that preserved quality and accessibility standards with the inclusion of links, images, and footnotes. With the release of Adobe Reader today, Adobe is giving iOS users two tools to create and properly read PDF documents, respectively.

    Adobe says that Reader for iOS works with several PDF document types, including PDF Portfolios, password-protected PDF documents and Adobe LiveCycle rights-managed PDF files. Upon first launch, the app opens a document view with a Getting Started.pdf file ready to be viewed to get familiar with the app’s UI and controls. A scrubber bar along the bottom lets you quickly skim through pages, which can be displayed “continuously” in the reading view, or through a single-page visualization that will let you scroll horizontally between pages. You can pinch or double-tap to zoom, and rendering performances on zoomed documents seemed fairly decent on my iPhone 4. In PDF documents, text can be selected and copied to the clipboard, or you can search using the icon in the upper toolbar; a bookmarks icon in the bottom bar enables you to quickly navigate the sections of a document. One nice touch of Adobe Reader are “tap zones”, which in Single Page mode let you jump back and forward by tapping on the left and right edges of a document.

    PDF files can be emailed using Adobe Reader, opened with another app using the “Open In” menu, or printed through Apple’s AirPrint. According to Adobe, Reader for iOS is capable of viewing PDF Portfolios, PDF Packages, annotations and drawing markups as well as reading text annotations like sticky notes. In my tests, performances with a 350-page PDF document were similar to Apple’s iBooks, which can also preview PDFs. iBooks was slightly faster at page animations and rendering text while zooming on a document – the app has indeed been recently updated with bug fixes and performance improvements.

    If you need to preview specific PDF documents that might have some compatibility issues with iBooks, Adobe Reader on iOS might be a good choice. You can download the app for free on the App Store.


    A Graphical Visualization of Apple’s Past iPhone Launches

    As Apple’s new iPhone 4S has topped four million units sold in its first weekend, we thought it might be appropriate to look back at Apple’s iPhone launch history and the evolution of weekend sales figures over time. The original iPhone launched in the United States in June 2007, and Apple announced the 1 millionth unit was sold after 74 days. During the launch quarter’s earnings call, however, the company confirmed 270,000 iPhones had been sold in the first 30 hours of U.S. availability.

    Since the iPhone 3G, which followed the original iPhone in 2008 with a new design and 3G connectivity, Apple has always managed to publish press releases announcing at least 1 million iPhone units sold after the first opening weekend. Both the iPhone 3G and iPhone 3GS, launched in multiple countries on Day One, registered 1 million sales in the first weekend. The iPhone 4, announced at WWDC last year by Steve Jobs and featuring a completely new design with more powerful CPU and improved camera, was the first iPhone to break the 1 million figure and jump past 1.7 million units sold in three days.

    With the iPhone 4S, Apple went back to announcing “1 million units sold” – only with pre-orders and after 24 hours, not three days. In the launch weekend, as reported this morning, the company reported over 4 million iPhone 4S units sold in the seven countries the device launched on October 14th: US, Canada, UK, France, Germany, Australia and Japan.

    Bigger weekend sales numbers are a result of the impressive growth of the iPhone in the past four years. Take a look at this graph we posted during the Q3 2011 earnings call in July: Apple went from 8.4 million iPhones sold in Q3 2010 to 20.3 million units in the third fiscal quarter of 2011. Launch days obviously attract far more “Apple fans” always waiting to get their hands on the latest device than “regular” sales weeks throughout the year, but clearly the popularity of the iPhone as a mass-market device is also affecting the lines around the world we see on every iPhone launch. It’s also widely believed that the iPhone 4S attracted several customers who bought an iPhone 3GS in 2009, and waited two years to get an updated model. The iPhone 4S is sold unlocked outside the US since day one, but it appears some US models have been sold without SIM-lock as well. According to Apple, unlocked iPhone 4S units will be sold starting this November.

    Check out the full-size graph of Apple’s iPhone launch history here, or click on the image below to enlarge.

    Data


    Instapaper 4.0 Available: Completely Redesigned iPad UI, New Features, Search Subscription

    Since I started using Instapaper in 2008, this app has changed the way I read. Instapaper 4.0, released today on the App Store, will change my reading habits, again.

    For those who are not familiar with the concept of Instapaper, it’s a web service that allows you to save web articles for later. But unlike the number of similar solutions that have surfaced since Apple featured the app multiple times (or simply its merits, which have been recognized by millions of average users alike), Instapaper isn’t simply a website with an account, a bunch of text stripped off websites, and a bookmarklet to grab articles. Over the years, Instapaper’s Marco Arment, founder and creator of the service, has managed to build an ecosystem around Instapaper, which is based upon but doesn’t stop at apps connected to the service via an API. Apps that support Instapaper play a big role in the service’s success and Arment even showcases this kind of integration in the new 4.0 version, but what really made Instapaper great is its simplicity coupled with publishers’ support, user adoption, multi-platform nature, and interconnectedness of tools that has allowed Instapaper – once a small indie project churning out a couple of thousand articles per day – to become the most popular way to never miss a good read.

    Instapaper works on the web, on the Amazon Kindle with automatic wireless delivery, and on Apple’s iPhone and iPad. The foundation upon which Instapaper works and prospers is the Read Later bookmarklet, a button you can install in your browser’s toolbar to send any webpage off to your Instapaper account. Instapaper, however, works best with articles, as its main goal is to provide users with an elegant way to read the words of an author without seeing ads, graphical elements, or readers’ comments. Just text. In this regard, Instapaper works like magic: you hit a button, and any web article is transformed into an elegant, readable, easy on the eye page that you can customize to your liking with different fonts, pagination and brightness settings, or “dark mode” if you prefer white text on black while reading at night.

    And I have been reading with Instapaper at night. Since the original iPad came out last year, pretty much everybody had a feeling the device could turn out to be ideal for reading, but no one really stopped to think about the implications of a device for Instapaper before the iPad’s release. When Apple did release the iPad and a native version of Instapaper was available on day one, it was clear Apple’s form factor and Arment’s UI decisions would play well together in the long term.

    I’m not the only one to think Instapaper nears perfection on the iPad. In fact, I’m not even the only one to think the iPad edition of Instapaper has redefined portable web reading since its introduction in April 2010. Amidst the proliferation of social magazines, RSS readers, social news readers and more or less any other variation of the terms “social” and “reading”, Instapaper for iPad provides a unique solution to a seemingly unfixable problem: to create your own collection of web articles, ready to take wherever you want. A collection – or, if you will, a constantly updating combination of inbox and archive – that’s also connected with the articles your friends like and the pieces written by people you trust.

    On the App Store, Instapaper started as an iPhone app. The app, featured in a great promotional video with Adam Lisagor, introduced iPhone users to the concept of “saving articles for later” – if you, too, have had too many interesting articles in your web browser and have wished there was a way to take them with you all the time, here’s the app for you. The video made it extremely clear that all you needed was a bookmarklet to hit, and an article would appear later on the web, or even better, on your iPhone. Instapaper for iPhone is a fantastic app; it updates fast, it’s elegant, it focuses on articles as it should be, and it gained a number of cool functionalities over time such as pagination, Twitter sharing, and Evernote integration. Yet, as this 4.0 update suggests, it’s clear Instapaper for iPad has somehow overshadowed its iPhone counterpart, making it the version to use when you can’t access your computer or iPad. Read more


    Apple: 4 Million iPhone 4S Units Sold In First Weekend

    With a press release, Apple has just announced that iPhone 4S sales have already topped 4 million since its debut on October 14th in seven countries. Apple also reported 25 million users are already using iOS 5, and 20 million have signed up for iCloud. According to Apple’s Phil Schiller, quoted in the press release, this is the most successful launch ever for a mobile phone, doubling the number of units sold by the iPhone 4 in three days last year. In June 2010, Apple sold 1.7 million iPhone 4s in just three days.

    That Apple was on track to deliver an impressive launch weekend with the iPhone 4S was clear since the company announced that over 1 million units had been pre-ordered in the first 24 hours of online availability. Following Apple’s announcement, US carriers AT&T and Sprint reported 200,000 pre-orders in the first 12 hours and a “very pleased” reaction to the iPhone 4S, respectively.

    Apple today announced it has sold over four million of its new iPhone® 4S, just three days after its launch on October 14. In addition, more than 25 million customers are already using iOS 5, the world’s most advanced mobile operating system, in the first five days of its release, and more than 20 million customers have signed up for iCloud®, a breakthrough set of free cloud services that automatically and wirelessly store your content in iCloud and push it to all your devices. iPhone 4S is available today in the US, Australia, Canada, France, Germany, Japan and the UK, and will be available in 22 more countries on October 28 and more than 70 countries by the end of the year.

    “iPhone 4S is off to a great start with more than four million sold in its first weekend—the most ever for a phone and more than double the iPhone 4 launch during its first three days,” said Philip Schiller, Apple’s senior vice president of Worldwide Product Marketing. “iPhone 4S is a hit with customers around the world, and together with iOS 5 and iCloud, is the best iPhone ever.”

    Since its launch, the iPhone 4S has collected largely positive reviews that focused on speed, camera improvements, and better 3G signal of the device. With iOS 5 and iCloud (our launch coverage here), the iPhone 4S is providing a combination of hardware and software (some iOS features are exclusive to the iPhone 4S, such as Siri) that has managed to capture the customers’ attention, as proved by the long lines around the world for the device’s launch.

    Apple’s next iPhone 4S rollout is on October 28th, when the device will be launch in Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Mexico, Netherlands, Norway, Singapore, Slovakia, Slovenia, Spain, Sweden and Switzerland.


    Sprint Reports “Best Ever Day of Sales” with iPhone 4S, iPhone 4 Launch

    Sprint Reports “Best Ever Day of Sales” with iPhone 4S, iPhone 4 Launch

    Sprint has issued a statement on the first day of iPhone 4S and iPhone 4 sales:

    Fared Adib, Sprint Product Chief, issued the following statement:

    “Sprint today reported its best ever day of sales in retail, web and telesales for a device family in Sprint history with the launch of iPhone 4S and iPhone 4. We reached this milestone at approximately noon CT/1pm ET. The response to this device by current and new customers has surpassed our expectations and validates our customers’ desire for a truly unlimited data pricing plan.

    Sprint started selling the iPhone 4S alongside carriers AT&T and Verizon this morning at 8 am in the United States. Sprint is also selling a new 8 GB version of the iPhone, announced by Apple last week. If pre-orders and lines are of any indication, clearly customers are interested in the new device rather than the cheaper model of the old version – which has been kept around at $99. Last week, Sprint said they were “very pleased” with iPhone 4S pre-orders, which AT&T reported at 200,000 units in the first 12 hours.

    Sprint is offering unlimited data plans starting at $79.99, and it’s believed to have struck a $20 billion deal with Apple to sell the iPhone over the next four years.

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    Sony Camera Found In iPhone 4S Teardown

    Sony Camera Found In iPhone 4S Teardown

    There was much speculation surrounding the supplier of the camera module of the new iPhone prior to the official iPhone 4S announcement, which confirmed the device has an improved 8 MP camera but didn’t give us any details on the manufacturer behind the component. In the months leading up to the iPhone 4S, you may remember Sony CEO Howard Stinger hinted at Sony producing the camera for the next-generation iPhone, though confusion arose as it wasn’t really clear whether he was being sarcastic in his statements or not. A report from June then noted both Sony and OmniVision – Apple’s main camera supplier for the previous iPhones – would supply a new 8 MP camera for the iPhone.

    Following iFixit’s teardown of the iPhone 4S, Chipworks has put the camera module under a microscope, and confirmed that their unit has a Sony camera as seen in the die markings from the photos. This still doesn’t completely exclude OmniVision from the list of camera suppliers, but it seems to confirm rumors of a Sony camera were correct.

    In order to get our readers the device manufacturer as soon as possible, rather than going through a fuming sulfuric acid chip deprocessing we chose to use our infrared microscope to look through the structure of this image sensor. What you see are the die markings on the base layer of the image sensor. The image isn’t beautiful, but it’s enough to tell us that Sony is in our particular iPhone 4S.

    The iPhone 4S’ camera has been known to feature improved optics, allow for 73% more light through the lens and, overall, shoot sharper and crisper images, as well as 1080p HD video. You can check out Chipworks’ teardown and X-ray images here. [via]

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