Apple’s Back to School sale returns to Australia and New Zealand w/ gift card promo

AU Apple Back to Uni

Apple’s annual Back to School sale in Australia and New Zealand has gone live with a promotion for qualifying students to receive Apple Store credit with the purchase of a Mac, iPad, or iPhone. Similar to last year, the Back to School sale includes the usual education pricing on Macs and iPads, but this year Apple is including Apple Store gift cards rather than App Store gift cards like last year. Read more

Tim Cook insists iPad prospects still rosy despite 18% drop in sales, 22% fall in revenue

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Apple’s press release yesterday noted “all-time record revenue from iPhone and Mac sales as well as record performance of the App Store,” while remaining silent on iPad sales. The reason? The slide continued last quarter, with year-on-year sales down 18%, and a reduction in average selling price meaning revenue was down 22%.

Tim Cook acknowledges that the switch to larger-screened iPhones mean the iPad is being squeezed from both sides.

There’s probably some level of cannibalization that’s going on, with the Mac on one side and the phone on the other.

It’s also undeniable that people upgrade their iPads less frequently than their iPhones–Cook putting the number at “somewhere between” the 2-year cycle of the iPhone and 5-year cycle of Mac–meaning that Apple needs to find a continual stream of customers buying an iPad for the first time …  Read more

Apple announces Q1 2015 revenue of $74.6b: 74.4m iPhones, 21.4m iPads, 5.5m Macs

(Image via Michael Steeber)

Apple announced its Q1 2015 earnings results today reporting $74.6 billion in revenue earning $18 billion in profit during the three-month period.

Apple® today announced financial results for its fiscal 2015 first quarter ended December 27, 2014. The Company posted record quarterly revenue of $74.6 billion and record quarterly net profit of $18 billion, or $3.06 per diluted share. These results compare to revenue of $57.6 billion and net profit of $13.1 billion, or $2.07 per diluted share, in the year-ago quarter. Gross margin was 39.9 percent compared to 37.9 percent in the year-ago quarter. International sales accounted for 65 percent of the quarter’s revenue.

In addition to its revenue and profit disclosure, Apple reported sales numbers for the following categories:

  • iPhone: 74.4 million units
  • iPad: 21.4 million units
  • Mac: 5.5 million units
  • iTunes: $4.7 billion
  • Accessories: $2.6 billion

Totals:

  • Revenue: $74.6 billion
  • EPS: $3.06 per share

Apple CEO Tim Cook said the following regarding the quarter:

“We’d like to thank our customers for an incredible quarter, which saw demand for Apple products soar to an all-time high,” said Tim Cook, Apple’s CEO. “Our revenue grew 30 percent over last year to $74.6 billion, and the execution by our teams to achieve these results was simply phenomenal.”

Apple CFO Luca Maestri added this:

“Our exceptional results produced EPS growth of 48 percent over last year, and $33.7 billion in operating cash flow during the quarter, an all-time record,” said Luca Maestri, Apple’s CFO. “We spent over $8 billion on our capital return program, bringing total returns to investors to almost $103 billion, over $57 billion of which occurred in just the last 12 months.”

Ahead of today’s earnings report, sales numbers for both the iPhone and iPad were particular areas of interest. Q1 2015 held the bulk of the iPhone 6 and iPhone 6 Plus sales in the United States and saw the new iPhone models debut in key countries like China. Meanwhile, the iPad sales numbers were particularly interested following last quarter’s year-over-year shipment decrease and the release of the iPad Air 2 and iPad mini 3 in October.

Apple’s Q1 2015 numbers follow last quarter’s results of $42.1 billion in revenue and sales of 39 million iPhones, 12.3 million iPads, and 5.5 million Macs. For the same quarter a year ago, Apple reported $57.6 billion in revenue and sales of 51 million iPhones, 26 million iPads, and 4.8 million Macs. Compare also to profit last quarter of $8.5 million and a year ago of $13.1 billion.

Apple will hold its conference call today at 2 PM Pacific/5 PM Eastern to discuss the quarter’s numbers, follow along for our coverage then. Both Cook and Maestri will likely share prepared remarks then answer a round of questions from analysts on the call.

For Q2 2015 Apple is providing guidance between $52 billion and $55 billion. The full Q1 earnings results release is below:

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Apple releases iOS 8.1.3 software update w/ stability improvements, reduces space required to update

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Apple released the iOS 8.1.3 software update for iPhone, iPad, and iPod touch users today. The update is available over-the-air through the Software Update section of the Settings app. The update includes the usual bug fixes and performances improvements, and notably claims to reduce the amount of free storage required to perform the update. Read more

1Password for iOS adds one-time password tool for two factor auth, new login creator, more

The popular secure password management app 1Password is out with a big update today adding new features on both iOS and Mac. Arriving in version 5.2 of 1Password for iOS is a new login creator tool, a one-time password tool for use with two factor auth, new entry fields for pro users, and more. On the Mac side, 1Password version 5.1 was released adding a number of improvements to sync. This includes the ability to sync secondary vaults to iOS over WiFi. More on the major new features below:

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AAPL earnings will come in well above upper end of company’s guidance, say analysts, at $68.3B

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Fortune has done its usual analyst poll ahead of Apple announcing its Q1 earnings tomorrow, and Wall Street is expecting the company to significantly out-perform its earnings guidance of $63.5 to $66.5B.

The consensus among the analysts Fortune polled — 20 professionals and 15 amateurs — is that Apple’s total sales for fiscal Q1 2015 will come in at about $68.3 billion, up 21% year over year.

That would be $1.8B above the upper end of the expectations Apple set back in October …  Read more

Angela Ahrendts recruiting U.S. employees for China as new stores & initiatives revealed

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Apple Senior Vice President of Retail Angela Ahrendts is continuing to go all in on growth in China. In video messages to employees in recent days and weeks, Ahrendts has been recruiting employees from United States-based Apple Retail stores to relocate to China to help build up Apple’s retail efforts in the region. In a note to employees late last week, sources say that Ahrendts reported that approximately 200 Apple retail workers from the U.S. have already offered to make the move. Ahrendts added that the offer to move to China “has no expiration date because as the business grows, our needs will only become greater, so as your personal and professional life changes, just always keep China at the top of your mind, because we’re going to need you…”

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Apple targets for Apple Watch battery life revealed, A5-caliber CPU inside

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Although Apple has said that the Apple Watch will need to be charged nightly, the company has not disclosed any details on how long the wearable’s battery will last. For the first time, people with knowledge of the Apple Watch’s development have provided us with the specific performance targets Apple wants to achieve for the Apple Watch battery, but the actual numbers may fall short of those targets.

According to our sources, Apple opted to use a relatively powerful processor and high-quality screen for the Apple Watch, both of which contribute to significant power drain. Running a stripped-down version of iOS codenamed SkiHill, the Apple S1 chip inside the Apple Watch is surprisingly close in performance to the version of Apple’s A5 processor found inside the current-generation iPod touch, while the Retina-class color display is capable of updating at a fluid 60 frames per second.

Apple initially wanted the Apple Watch battery to provide roughly one full day of usage, mixing a comparatively small amount of active use with a larger amount of passive use. As of 2014, Apple wanted the Watch to provide roughly 2.5 to 4 hours of active application use versus 19 hours of combined active/passive use, 3 days of pure standby time, or 4 days if left in a sleeping mode. Sources, however, say that Apple will only likely achieve approximately 2-3 days in either the standby or low-power modes…

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