Apple

Forrester Research today published an interesting and extensive analysis (via CNET) based on a large-scale poll of 10,000 information workers from North America and Western Europe, including 3,350 higher-ups that make purchasing decisions. The report, titled “Apple Infiltrates The Enterprise And Reshapes The Markets For Personal Devices At Work,” found out that 21 percent use one or more Apple devices (the figure includes gear they had brought in).

Nearly half of businesses, or 46 percent, now issue Macs to their workers. That is up by more than half in two years (36 and 30 percent in 2010 and 2009, respectively). Moreover, hardware decision makers envision a 52 increase in Mac adoption in their companies this year. Out of those firms that issue Macs, a healthy 7 percent of all personal computers issued are Macs. The report said Macs in enterprise plus Microsoft’s poor mobile offering both signal that “Windows’ dominance is at an end.”  This sounds a lot like Forrester’s take on the post-PC era.

As for iPads and iPhones, 27 and 37 percent of companies officially support Apple’s tablet and phone, respectively. Things get even more interesting as 31 percent consider supporting the iPad in 2012 (55 percent for the iPhone). Microsoft cannot be too happy with this survey. So, who exactly gets to use Apple gear? Your bosses, that’s who! More information is available below.

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A patent application published by the U.S. Patent & Trademark Office earlier today reveals Apple is flirting with the idea of a universal touchscreen controller capable of controlling multiple devices including a “television, a video tape player, a video disk player, a stereo, a home control system, or a computer system.” The patent application is titled “Apparatus and Method to Facilitate Universal Remote Control” and was filed Sept. 30, 2011.

The patent application’s background covers many of the issues with current controllers for televisions and the devices mentioned above. It noted current universal remotes are “complex to operate” and unable to adapt to incorporate every command or control functionality supported by a device or future device. It also mentions the fact that users are often “confronted with multiple” remotes, which is the classic “table full of remotes” scenario described by Steve Jobs when talking about the Apple TV at D8. The patent application explained:

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United States carrier AT&T said this morning it activated 7.6 million iPhones during the holiday quarter, besting Verizon’s 4.2 million iPhone activations. It was the best-ever quarter for sales of Apple’s handset for AT&T as iPhone accounted for a whopping 80.8 percent of the 9.4 million smartphones the carrier sold in Q4 2011 (56 percent in Q3 2011).

From the earnings release:

Both iPhone and Android device sales set records. During the quarter, more than 7.6 million iPhones were activated, the majority of which were iPhone 4S, which went on sale Oct. 14, and more than twice as many Android smartphones were sold versus the fourth quarter a year ago. iPhone sales were helped by a superior customer experience, with AT&T delivering download speeds up to three-times faster than on other U.S. carriers’ networks.

Strong iPhone 4S and Android performance helped the carrier weather the storm to some extent as the numbers also reveal a big net loss $6.7 billion, or $1.12 a share, despite a 2 percent increase in sales in 2011. Much of this is contributed to a $4 billion break-up fee for the failed merger with Deutsche Telekom’s T-Mobile USA unit and a change in its pension accounting. If we exclude the breakup fee, pension costs and the impairment of its directory asset, AT&T earned 42 cents per share. Additional data points after the break.

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Apple’s iPad maintained its market lead throughout fourth quarter of last year even though it lost some ground compared to the previous quarter due to an influx of Android-based tablets. In fact, Amazon’s dirt-cheap Kindle Fire device that costs just $199 saved the day for Android slates, really. This is the gist of the latest survey by research firm Strategy Analytics that was released this morning.

Global tablet shipments reached 26.8 million units in the fourth quarter of 2011— up 150 percent from 10.7 million from the year-ago quarter. Global tablet shipments hit 66.9 million units throughout 2011— a 260 percent increase from just 18.6 million units in 2010. Looking at how tablet vendors performed throughout Q4 2011, the survey recorded a 39.1 percent share for tablets powered by Android. Even though it is a record for tablets driven by Google’s software, Apple sold 15.43 million iPads during the holiday quarter for a healthy 57.6 percent share. This left the remaining 3 percent for tablets outside the Android/iOS tablet duopoly, with Microsoft-driven devices holding onto 1 percent share of the market.

This compares to a Strategy Analytics’ survey for the September 2011 quarter that depicted a 27 percent share for Android tablets in Q3 2011 (up from 2.3 percent in Q3 2010) and 67 percent for iPad (down from 96 percent in Q3 2010). Android tablets are clearly picking up steam, largely based on the success of Amazon’s device that launched Oct. 15, 2011. Still, the iPad is expected to remain king of the hill as analysts expect its lead to maintain throughout 2012.

Strategy Analytics Research Director Peter King opined:

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We heard earlier today that the next iPhone may have a bigger screen which could make the chassis slightly bigger.  How do you feel about this?  What size would you prefer?

Unsure? Check here (via Tim Bray).
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Owners of the Apple TV set-top box around the world took to Twitter to complain about an unknown issue affecting the device’s ability to stream YouTube clips through the Internet section of the main menu. According to reports, attempting to play any YouTube clip produces this error message:

No content was found. There is a problem communicating with YouTube. Try again later.

It would appear that some sort of backend issue is to blame, but it is inconclusive. The problem persisted since the past couple days; with a bunch of posts over at the Apple Support Communities indicating it is widespread. One poster claimed an Apple representative advised him to contact Google because this is “a YouTube issue.”

It seems to be particularly bad in Japan, Australia, Canada and various European countries, including the United Kingdom, Scotland, Germany, France, Italy, Spain and the Netherlands, Denmark, Romania, Argentina and Croatia.

Not all users in the United States seem to be experiencing this issue, although some do. Resetting a router or the device will not help. Likewise, performing a factory restore to the latest 4.4.4 firmware did not do the trick for another poster. Some users are only able to see the videos in their History. Are you having same issues with your Apple TV? We would love to hear from you in the comments.

[youtube=http://www.youtube.com/watch?v=9b4mlFqq6pQ]

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Apple announced monster sales of 37 million iPhones yesterday for the holiday quarter that spanned 14 weeks and ended Dec. 31, 2011. It’s a 128 percent unit increase and 133 percent revenue increase, annually, and enough to knock Samsung off the No. 1 spot it briefly held in the previous quarter. However, it appears that the popularity of the iPhone 4S also helped Apple thrive over Google’s platform, especially with Android backers such as Motorola Mobility, HTC and Sony Ericsson reporting disappointing results.

According to research firm Kantar Worldpanel ComTech (via Reuters), iPhone sales gave iPhone a lead over Android in smartphone sales in the United States. Specifically, Apple’s share of the U.S. market during October to November of last year doubled from 22.45 percent a year ago to 44.9 percent. Meanwhile Google’s Android smartphones dropped from 50 percent to 44.8 percent in the same period. Kantar’s global consumer insight director Dominic Sunnebo:

Apple has continued its strong sales run in the U.S., UK and Australia over the Christmas period. Overall, Apple sales are now growing at a faster rate than Android across the nine countries we cover.

Another way to look at iPhone numbers: The iPhone business generated $24.42 billion revenue. During the same quarter, all of Microsoft raked in $20.89 billion revenue. In fact, all of Apple’s holiday-quarter revenues and profits were two times higher than Microsoft’s.

Yet another look at iPhone numbers: Apple sells more iPhones in a day than babies born.

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The Steve Jobs segment begins at mark 3:35. Flashless version is here.

Microsoft cofounder and former CEO Bill Gates sat for an interesting interview with Yahoo! and ABC News. The public face of Microsoft responded to a wide range of questions, including those touching on his final conversation with Steve Jobs and how his passing affected him. Contrary to the popular belief, the two Silicon Valley luminaries kept in contact with each other throughout their respective careers. What were the topics of their friendly chats?

He and I always enjoyed talking. He would throw some things out, you know, some stimulating things. We’d talk about the other companies that have come along. We talked about our families and how lucky we’d both been in terms of the women we married. It was great relaxed conversation.

How did Jobs’ death affect Gates? Read on…

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Following our in depth report last night on Apple turning its Anobit purchase into a permanent Israeli  presence, a new report in Hebrew by Israeli daily business newspaper Calcalist says Apple is looking to open a research center in Haifa by the end of February.  This follows its acquisition of NAND flash technology provider Anobit for a reported $390 million. The facility is said to be located at the Matam technology district south of the Haifa city, right in the neighborhood of Intel, Microsoft and Philips who also run R&D centers there.

The company reportedly received “several hundred resumes” for various engineering positions. Specifically, Apple is seeking hardware engineers in chip development with strong emphasis on electrical circuits, analogue and hardware testing and verification. The publication learned that Apple’s new research center in Israel is not related to the Anobit acquisition. In fact, Anobit employees are not expected to participate in the activities of the Haifa research center.

The Yedioth Ahronoth Group is also behind Yedioth Ahronoth, Israel’s most widely circulated newspaper publishes Calcalist. The paper reported in December of last year that Apple dispatched its Vice President of R&D Ed Frank to investigating possibilities of an Apple-run development center in Israel. Apple joins other Silicon Valley firms that operate R&D facilities in the country, such as chipmakers Intel, Qualcomm and Broadcom, Internet giants Google, Yahoo! and eBay, software makers IBM and Microsoft and China-based handset maker Huawei.

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Apple just emailed customers who pre-ordered the book “Inside Apple” from the iBookstore to let them know the book is now available to download and read. Those interested in downloading the book can do so from this direct link.  The Amazon Kindle version should be available in less than an hour.

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President Obama is wrapping up his State of the Union Address right now. During the event, President Obama made many references to technology as a way to help with economic times. More specifically, President Obama had a pleasant mention for Apple’s late cofounder and CEO Steve Jobs with his widow Laurene Powell Jobs in attendance.

 “That means women should earn equal pay for equal work. It means we should support everyone who’s willing to work; and every risk-tasker and entrepreneur who aspires to become the next Steve Jobs.”

You may remember when Jobs had dinner with President Obama and other successful technology entrepreneurs in February of last year. The discussion revolved around getting people to collaborate and invest in American innovation to promote private sector job growth.

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During the question-and-answer section of Apple’s blowout Q1 2012 earnings call, Apple CEO Tim Cook let out a widely known fact from within the company: Apple Senior Vice President of Hardware Engineering Bob Mansfield is now in charge of the team that comes from Anobit, an Israel-based SSD company that Apple acquired earlier this month. Cook also said Apple is integrating Anobit’s talent into Apple’s current workflow. Cook did, however, leave out some crucial details about Anobit’s integration into Apple.

We have some of the missing details, below:

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Following today’s blowout numbers, we just received word that Apple CEO Tim Cook sent a short email to Apple employees congratulating them both on a record setting holiday quarter and starting 2012 with the launch of a groundbreaking initiative for education with iBooks 2 and iPad textbooks.

Perhaps most enticing, Cook told everyone to report to Town Hall tomorrow either in person or through their AppleWeb online portal at 10 a.m. PT to discuss “some exciting new things going on at Apple.” Former Apple CEO Steve Jobs typically held such meetings following major product launches like the iPad and iPhone.

Cook’s last all hands email was sent just one week ago and discussed Apple’s supplier responsibility report.

Today’s email from Cook is pasted below:

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Apple just announced its Q1 2012 earnings in a press release a few minutes ago, which revealed very impressive numbers from the company. Apple revealed it sold a whopping 37 million iPhones during the holiday quarter, which now gives the company the No. 1 smartphone manufacturer spot —back from Samsung, who previously held the title. Earlier this month, Samsung gave estimates of 35 million phones sold during the holiday quarter. This means Apple beat the company by 2 million.

Check out the full announcement and the live blog coming up in a few minutes for more record setting figures from Apple.

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Chart via

Apple had another blowout quarter this holiday and set records across the board.  iPhones, which many estimated optimistically at 30 million, leapt to over 37 million to create the biggest quarter ever.  iPads crossed 15 million for the first time, and even Apple’s venerable Mac line crossed 5 million units for the first time (likely helped by the popular MacBook Air lineup). iPods, if you needed a downside, were off by 20-percent —which is not terrible, because Apple did not upgrade most of the iPods available last Christmas.

Apple recorded revenues of $46.33 billion and record quarterly net profit of $13.06 billion, or $13.87 per diluted share.

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“We’re thrilled with our outstanding results and record-breaking sales of iPhones, iPads and Macs,” said Tim Cook, Apple’s CEO. “Apple’s momentum is incredibly strong, and we have some amazing new products in the pipeline.”

“We are very happy to have generated over $17.5 billion in cash flow from operations during the December quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the second fiscal quarter of 2012, which will span 13 weeks, we expect revenue of about $32.5 billion and we expect diluted earnings per share of about $8.50.”

The full press release follows, and do not forget the live blog coming shortly.

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Apple’s live call to discuss Q1 2012 earnings is underway. We’re live blogging the call, where Apple is discussing their record breaking figures they just announced. You can follow along below, or listen to the call on Apple’s Investor Relations page.

Update: that’s a wrap. Thanks for joining us! You can read the highlights from today’s call after the break:

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Laurene Powell Jobs, widow of Apple cofounder and former CEO Steve Jobs, is among the attendees of the State of the Union address scheduled for 9 p.m. tonight (live stream here). According to the official guest list, the White House invited Powell Jobs, along with other distinguished individuals, to attend the State of the Union address, including billionaire Warren Buffett’s secretary Debbie Bosanek, cancer survivor Adam Rapp, and Mark Kelly, former astronaut and husband of outgoing Arizona Rep. Gabrielle Giffords. The news becomes interesting knowing the White House usually invites people that have something to do with a proposal or initiative the President will outline in the address. Powell Jobs may have been invited for her focus on education, the arts and women’s human rights.

Vanguard has it that Obama will welcome Powell Jobs to his State of the Union address out of respect for her late husband. According to the White House, Powell Jobs will watch Obama’s speech from First Lady Michelle Obama’s box in the House of Representatives. In December of last year, Obama gave Jobs’ widow a seat on the White House Council for Community Solutions. Chaired by former Gates Foundation CEO Patty Stonesifer, the body advises the President on job creation and social issues. eBay CEO John Donahoe and singer Jon Bon Jovi are also among the members.

Powell Jobs’ ties in education could also prove key, as education is allegedly one of key focus areas of tonight’s State of the Union address. Let’s not forget that Apple held an education-focused media event last week, debuting digital textbooks on the iPad priced at $14.99 or less and a free tool that lets anyone create and publish digital textbooks to iBookstore. In just three days, more than 350,000 copies of digital textbooks were downloaded from the store. Oh, and Obama is an avid fan of Apple’s tablet.

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With the growing sales of Apple’s mobile devices and the ever-increasing popularity of smartphones (analysts projected 30+ million iPhones for today’s holiday quarter earnings call), it is no surprise that the Mac-maker is rising up the chip-purchasing ladder. According to research firm Gartner, Apple is now the world’s largest buyer of silicon parts, spending an astounding $17 billion on semiconductors in 2011 and accounting for a 5.7 percent share of total silicon buying.

That’s a 34.6 percent increase over 2010— enough to jump two spots ahead of rivals Samsung and the world’s leading computer maker Hewlett-Packard (soon to be displaced by Apple). Apple’s rise stems of strong sales of iPads, iPhones and its popular MacBook Air ultra-portable notebook family. Samsung ranked second with $16.7 billion worth of semiconductors in 2011, a 5.5 percent share. Computer makers Hewlett-Packard and Dell and cell phone giant Nokia round up the list of top five chip buyers with $16.7 billion, $9.8 billion and $9 billion worth of silicon parts, respectively.

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Apple and its cofounder Steve Jobs certainly helped design and popularize storage devices throughout computing history. For example, the Mac mainstreamed Sony’s 3.5-inch floppy drive in the 1980s, but Apple was working on its own storage devices even before the Mac debuted. One of our buddies discovered this eBay listing advertising for what appears to be a prototype of a previously unknown NISHA hard drive adorned with the colorful Apple logo. It comes in a translucent case, and it could easily be the first Apple product we have seen like this, even though it never shipped. It is neither a Hard Disk 20 drive Apple introduced on Sept. 17, 1985 specifically for use with the Macintosh 512K nor is it a Hard Disk 20SC.

The latter product was the first SCSI drive Apple manufactured and deployed on the Macintosh Plus in 1986, effectively obsolescing the Hard Disk 20 unit. It is a safe bet that this unit represents an early prototype of one of Apple’s hard drives, but it could also be a new hard drive design that never saw the light of day. The seller could not tell either, as the drive did not power up. Eagle-eyed readers are aware that Apple of the past had been designing its own storage devices and the aforementioned Hard Disk 20 serves as an illustrious example of the company’s closed approach to hard drives.

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Apple pays utmost attention to the unforgettable experiences customers get from interacting with their thoughtfully designed product packaging, as evident in countless unboxing videos on the web. It is little surprise, then, that the company goes to great lengths to create lasting unboxing experiences.

With that said, of course the company has a dedicated “secret” room to test various packaging designs. It is somewhat akin to Jony Ive’s design bunker in that it is a place where many prototypes are being iterated exhaustively, per Apple’s famous penchant for perfection. Apple even has a number of patents, such as this filing outlining an active packaging for products that will allow Apple to change what is inside on the fly.

According to an excerpt from Adam Lashinsky’s upcoming book titled “Inside Apple: How America’s Most Admired – and Secretive – Company Really Works,” Apple agonizes over how its products are packaged as much as the hardware inside:

To fully grasp how seriously Apple executives sweat the small stuff, consider this: For months, a packaging designer was holed up in this room performing the most mundane of tasks – opening boxes.

According to the author, Apple once stuffed the room with hundreds of iPod box prototypes, testing each one of them until the company settled with the final design:

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Apple plucked a high-ranking executive from the folding Sony Ericsson Joint Venture, 9to5Mac has learned.  President of Sony Ericsson U.S. and Head of Region North America Anderson Teixeira will be heading Apple’s Latin America region.  He is leaving Sony Ericsson after a decade at the JV.

Sony is buying out Ericsson’s piece of the venture and the group is folding into Sony Electronics.

Teixeira started at Apple this month.

Internally at Apple, he is “Latin America General Manager,” but to the greater world he’s “Head of Latin America.”  He will be operating out of Apple’s small Coral Gables Florida office at 1 Alhambra Plaza Suite 700.  He has nine reports at that office.

A mid-2009 profile listed some background on his appointment at Sony:

Anderson Teixeira was based at the company’s US operations in Raleigh, North Carolina. A native of Brazil, Teixeira has been part of Sony Ericsson since the formation of the joint venture in 2001. He has led the company’s operations in Latin America, as Head of Region Latin America, based in Miami, Florida, and subsequently in Western Europe, based in Munich. As President of Sony Ericsson US, Teixeira will report to Sony Ericsson President Dick Komiyama. In his role as Head of Region North America, Teixeira will have overall responsibility for Sony Ericsson’s sales and marketing operations in the US and Canada.

It is not immediately clear who Teixeira will report to but we will update that information as it becomes available.

Apple’s Latin America presence has been growing with the iPhone spreading across carriers like wildfire and even a Foxconn iPhone production line opening in Teixeira’s native Brazil.

Videos of Teixeira discussing Sony operations are embedded below:
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