Apple

Component orders by Apple for the iPhone 6 are a significant factor in the current thriving state of a number of Asian economies, say analysts and government officials cited by the WSJ.

Analysts expect companies from Taiwan, Japan and South Korea that supplied earlier versions of the iPhone to produce key components like displays, camera lenses and microprocessors. Already, some of those companies are announcing increased earnings or forecasts, and economists and analysts are talking about an Apple effect on whole sectors and economies …

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Supply-chain rumors are can be unreliable sources at the best of times, but never more so than when they claim to offer insight into Apple’s strategic plans. DigiTimes is claiming that Apple will be launching the 4.7- and 5.5-inch models of the iPhone 6 separately “to avoid competition between the two models.”

The different timetables have been set as Apple does not want to repeat the mistake it made in 2013 when it launched the iPhone 5s and iPhone 5c simultaneously, said the sources.

Let’s take this one step at a time. First, what companies in the supply-chain know are how many orders have been placed with them for specific components. They don’t know what orders Apple may have placed with other suppliers for the same components, and they don’t even necessarily know in which product the parts will be used … 
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The Information has a new report out discussing Apple’s progress on a mobile wallet payments service. The post echoes reporting by 9to5Mac earlier in the year.

The report says the service may launch this fall, enabling iPhone users to pay for goods with their devices in retail outlets. Apple has apparently discussed the plans with credit card institutions, according to the report, as a user’s banking information “would essentially be uploaded to the wallet”. Apparently, Visa is already onboard with the project.

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While iOS 8 for the iPhone, iPad, and iPod touch is set for a September launch, Apple is planning to bring its next-generation Mac software, OS X Yosemite, into the wild a month later, in October, according to several sources. Apple plans to continue releasing OS X Yosemite Developer Previews every two to three weeks until a final Developer Preview is seeded on September 29th, according to the people. Apple is then expected to finish up work on Yosemite in early October and release a golden master build around October 10th, the sources said. Apple is also finishing up preparations to release a version of OS X Yosemite beta tomorrow to the first one million people who signed up for the public beta.

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Apple is gearing up for its first major hardware and software launches of 2014. The Cupertino-based company is “tentatively” planning a keynote address in mid-September to announce the iPhone 6 and provide final details on iOS 8, according to sources briefed on the plans.

These people say that the second and third weeks of September are the mostly likely weeks for the event to be held, but they add that manufacturing uncertainties could alter the event’s timeframe. A decision has not been finalized, and sources made it clear that the plans are in flux.

The event will showcase at least the new iPhone 6 with a 4.7-inch screen, the sources say, but a final decision on debuting the larger, 5.5-inch “phablet” model at the event has not been made. The 4.7-inch variant of the new phone is farther along in both internal testing and manufacturing preparation, the sources added.

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With Apple reporting lower-than-expected iPad sales for the second quarter in a row, it’s likely that Tim Cook will be once again be called on to reassure investors that the decline in year-on-year sales won’t continue indefinitely.

Cook has been very bullish on the iPad, despite the numbers, pointing especially to growing sales in the education sector and the opportunity for tablet growth in enterprise.

The penetration in business is low, it’s only 20 percent. If you looked at the penetration of notebooks in business it would be over 60 percent. We think there is a substantial upside in business.”

I think he’s right, especially with the IBM partnership. I mentioned in my opinion piece then that increasing penetration in enterprise could also help drive consumer migration from Android, as it gives people exposure to iOS devices. But the impact this has could well be offset by the iPhone 6 … 
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In addition to launching a redesigned version on Android, Fleksy today has given us a first look at its upcoming keyboard offering for Apple’s iOS 8. iOS 8 launches this fall with several new iPad, iPhone, and iPod touch features, including the ability for developers to launch custom system-wide keyboards. Fleksy previously announced that it is working on a keyboard for iOS 8 and has opened up signups for a beta, but today the company provided us with the first images and some new details…

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While Wall Street may have been slightly disappointed by some of the numbers Apple reported yesterday, they should feel reassured by Apple stabilising and growing its gross margins, say Apple bulls – analysts who expect the stock price to rise.

Business Insider noted the above chart tweeted by Benedict Evans with the commentary:

Very stable long-term gross margins. Painful contrast to rest of the industry …

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Even though Apple will begin integrating iOS and OS X in new, mutually beneficial ways with iOS 8 and OS X Yosemite, Apple currently plans to stagger the releases of the two operating systems, according to people briefed on the plans. iOS 8 will launch in September alongside the iPhone 6, and OS X Yosemite will launch approximately a month later, in October, according to the sources…

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Apple and U.S.-based wireless carrier AT&T have begun sending out $40 checks to buyers of the original iPad WiFi + 3G in the United States over a “bait-and-switch” regarding the device’s data plan. The backstory is that when Steve Jobs announced the 3G iPad in January 2010, he announced a deal with AT&T for a $30/month unlimited iPad data plan.

When the 3G iPad launched in late April 2010, this plan was available, but AT&T eliminated the plan just about one month later in early June 2010. Lawsuits followed in the months and years following the shift in data plan strategy claimed that customers overpaid for the 3G iPad believing that they would be able to use the device to access unlimited amounts of data.

In September 2013, Apple and AT&T settled and agreed to pay $40 to each affected iPad buyer. For iPad buyers who had not yet purchased an unlimited data plan, a discount on the replacing 5GB plan was offered. The two companies began sending the checks out late last week, and they began arriving today. You can view the entire check stub and letter from the payout fund below:

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Apple today announced its Q3 2014 earnings results, revealing that the company pulled in $37.4 billion in revenue and $7.7 billion in profit during the quarter.

Apple® today announced financial results for its fiscal 2014 third quarter ended June 28, 2014. The Company posted quarterly revenue of $37.4 billion and quarterly net profit of $7.7 billion, or $1.28 per diluted share. These results compare to revenue of $35.3 billion and net profit of $6.9 billion, or $1.07 per diluted share, in the year-ago quarter. Gross margin was 39.4 percent compared to 36.9 percent in the year-ago quarter. International sales accounted for 59 percent of the quarter’s revenue.

Apple, as always, has also disclosed sales numbers for its main revenue generators. The company sold:

• 35.2 million iPhones
• 13.2 million iPads
• 4.4 million Macs
• 2.9 million iPods

Apple’s guidance for the quarter indicated revenue results between $36 and $38 billion, which Apple met.

Here’s Apple CEO Tim Cook on the results:

“Our record June quarter revenue was fueled by strong sales of iPhone and Mac and the continued growth of revenue from the Apple ecosystem, driving our highest EPS growth rate in seven quarters,” said Tim Cook, Apple’s CEO. “We are incredibly excited about the upcoming releases of iOS 8 and OS X Yosemite, as well as other new products and services that we can’t wait to introduce.”

Here’s newly instated CFO Luca Maestri with his thoughts:

“We generated $10.3 billion in cash flow from operations and returned over $8 billion in cash to shareholders through dividends and share repurchases during the June quarter,” said Luca Maestri, Apple’s CFO. “We have now taken action on over $74 billion of our $130 billion capital return program with six quarters remaining to its completion.”

Apple’s Q3 has been relatively quiet in terms of new product announcements, but the Cupertino-company did announce major moves such as the impending acquisition of Beats Electronics and Beats Music along with an expansive future partnership with IBM for enterprise-related initiatives.

These numbers compare to last quarter’s results of $45.6 billion in revenue and sales of 43.7 million iPhones, 16.3 million iPads, and 4.1 million Macs. You can also compare today’s numbers to analyst expectations from before the announcement. Apple is also holding a conference call today at 2 PM Pacific/5 PM Eastern time, which we will be covering live. Cook and Maestri will likely share prepared remarks and then take a series of questions at the end from financial analysts.

For Q4 2014, Apple is providing guidance between $37 billion and $40 billion. The full Q3 earnings results release is below:

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With more and more retailers, event spaces, and others deploying Apple’s Bluetooth LE iBeacon technology in order to beam iPhone and iPad users context and location aware notifications, we still haven’t seen much data on how the beacons are improving ad engagement for marketers. InMarket, a company installing iBeacons in grocery stores around the country that talk to a number of apps from its advertising partners, today shared some of the first stats from a specific consumer brand using the platform. 
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A patent application filed by Apple three years ago and approved today illustrates a new twist on the iWatch concept: a sensor-packed strap acting as a dock which allows a range of interchangeable modules to be snapped into place.

It’s not anything we’re likely to see make it into production: the docking concept dates back to 2011, and was probably intended by Apple to house an iPod Nano, converting it into a smartwatch in a more sophisticated version of the watch-straps sold in Apple Stores since way back in 2010. But the patent does tell us two things … 
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With Fortune having now filled in the blanks in its analyst roundup, above are the final numbers Wall Street expects Apple to announce at around 1.30pm PT/4.30pm ET this afternoon.

With all 34 analysts having revealed their predictions, the consensus view is for year-on-year revenue to have grown by 8.5 percent, with earnings up 18.1 percent … 
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