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Apple reports $43.6b revenue for Q2 2013: 37.4m iPhones, 19.5m iPads, 5.6m iPods, just under 4m Macs

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As planned, Apple has announced its Q2 2013 earnings results.

Apple® today announced financial results for its fiscal 2013 second quarter ended March 30, 2013. The Company posted quarterly revenue of $43.6 billion and quarterly net profit of $9.5 billion, or $10.09 per diluted share. These results compare to revenue of $39.2 billion and net profit of $11.6 billion, or $12.30 per diluted share, in the year-ago quarter. Gross margin was 37.5 percent compared to 47.4 percent in the year-ago quarter. International sales accounted for 66 percent of the quarter’s revenue.

The Company sold 37.4 million iPhones in the quarter, compared to 35.1 million in the year-ago quarter. Apple also sold 19.5 million iPads during the quarter, compared to 11.8 million in the year-ago quarter. The Company sold just under 4 million Macs, compared to 4 million in the year-ago quarter.

Apple reported revenues for Q2 of $43.6 billion, which beats Apple’s estimates for the quarter of between $41 and $43 billion. This revenue compares to a revenue of $39.2 billion in the year-ago Q2. Apple also reported net profit of $9.5 billion, or $10.09 per diluted share

Apple sold 37.4 million iPhones, 19.5 million iPads, just under 4 million Macs, and 5.6 million iPods. This compares to 35.1 million iPhones, 11.8 million iPads, and 4 million Macs, sold in the year-ago Q2 2012 quarter.

Apple CEO Tim Cook on the results:

“We are pleased to report record March quarter revenue thanks to continued strong performance of iPhone and iPad,” said Tim Cook, Apple’s CEO. “Our teams are hard at work on some amazing new hardware, software and services, and we are very excited about the products in our pipeline.”

Apple CFO Peter Oppenheimer as well:

“Our cash generation remains very strong, with $12.5 billion in cash flow from operations during the quarter and an ending cash balance of $145 billion,” said Peter Oppenheimer, Apple’s CFO.

Apple’s guidance for next quarter (Q3 2013) is revenue between $33.5 billion and $35.5 billion

Apple will hold a conference call regarding today’s announcement. We will have live coverage at 5 PM EST/ 2 PM PST.

Here’s Apple’s press release announcement:


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Apple Store app for iPhone updated with notifications for when you are eligible for iPhone upgrade pricing

Apple’s official Apple Store application for iPhone and iPod touch has been updated with some neat notifications-related enhancements:

– Choose to receive notifications that let you know exactly when you’re eligible for upgrade pricing on a new iPhone. And since all you need to complete the order is your Apple ID and password, buying your new iPhone is fast and easy (US only).

– Stay on top of your delivery with notifications. We’ll let you know when your order ships, keep you informed of any updates, and notify you when it’s delivered.


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OS X 10.8.4 code confirms new Macs incoming with super-fast 802.11ac Gigabit wireless support

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Apple is preparing to soon release new Mac computers that support super-fast 802.11ac Gigabit wireless, according to code-findings inside of Apple’s latest OS X Mountain Lion 10.8.4 beta seed to developers. The code was located by a tipster inside of the operating system’s WiFi-frameworks folder. As you can see in the image directly below, the 802.11ac code is not found in OS X 10.8.3, which is the latest public release of Apple’s Mac operating system.

Previous reports have claimed that Apple is working with wireless chipmaker Broadcom to produce 802.11ac chips for future Macs. Now, it appears, Apple’s software is ready to support the new wireless technology as well. More details below…


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AAPL share price spikes on rumors of imminent stock split announcement

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Apple’s stock share price has risen today, after being down this morning, due to a rumor of an imminent stock split announcement. SeekingAlpha points to a tweet from The Street’s Doug Kass that seems to be the original source of the rumor. Apple’s next shareholder meeting will be held tomorrow, and this is where the announcement is rumored to take place.

We’d caution that this is just a rumor (if reliable, why didn’t he post it on the Street.com?)at this point and Kass’s past hits include things such as:

“I am also hearing that Google CEO Eric Schmidt has already begun low-level discussions with several Apple board members regarding his role as a possible temporary replacement to Steve Jobs should the options-backdating issues intensify at legal levels.”

Also Kass has a big personal interest in AAPL’s share price:
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Apple launches Apple TV in India for Rs 8,295 ($150)

After officially bringing iTunes music and movies to India alongside a huge international rollout in December, Apple appears to have now launched Apple TV in the country. The Apple TV product page on Apple’s India website was first spotted by BGR India, but Apple has yet to issue an official press release announcing the product launch. The product page doesn’t include a “buy” button, and some reports claim stock has not yet made it to Apple resellers in the country. BGR first posted a screenshot of Apple’s site showing an Rs 7,900 price tag, but Apple’s website now shows a price of Rs 8295 (as pictured to the right). That’s roughly $150 USD and slightly higher than first rumored. As pictured above, the product page also highlights a number of Bollywood films and other local content in addition to The Wall Street Journal, YouTube, Vimeo, and MLB.TV.

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Deal Alert: MacConnection drops 13″ Retina MacBook Pro to $1349 ($150 off)

From 9to5Toys.com and 9to5Mac Product Pages:

MacConnection is having a flash sale on the 13-inch MacBook Pro with Retina display knocking $150 off the just lowered price. $1349 is the lowest price we’ve ever seen on what many consider to be Apple’s best portable computer. Apple charges less for Refurbished models.

For other configurations, see our MacBook Pro MacBook Air and other product pages.

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Apple looking for managers to lead ‘high-priority’ next-generation Apple TV feature development

A recent job posting by Apple looking for an Apple TV software engineer backs up rumors that the company is finally preparing to expand its presence in the living room. According to the job listing on Apple’s website, the company is looking for someone to “lead a team of engineers working on exciting new features and functionality” for the next-generation Apple TV. Once described by Apple as a hobby, the job listing refers to the Apple TV as a “high priority project.”

The Apple TV team is looking for an experienced engineering manager to help deliver the next generation features for Apple TV. Bring your creative energy and engineering discipline, and help us bring the Apple experience to the Living Room…Work closely with cross functional teams, representing Apple TV across Apple

With all the recent rumors of an upcoming Apple TV-related event, the reports that Apple is getting ready to introduce a revamped TV platform are starting to hold a little more weight. Reports from analysts about the company planning an event for next month to introduce a new Apple TV SDK were quickly shot down, but other reliable sources have chimed in today and claimed the event is likely scheduled for fall.

We don’t often report on Apple’s job listings, but Apple TV has languished for a while and we rarely see job listings from Apple referring to the device’s next-generation features. We also have never seen Apple refer to Apple TV as a “high priority project.”

(Image via Yelena & Nickolay Lamm)

iOS 6 bug lets institutional users bypass ‘Don’t Allow Changes’ account restriction, install unapproved apps (Update: fixed)

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Update (Feb 21st): This has been fixed according to a reader. The iTunes and App Stores use HTML on the backend so Apple can “push” updates via backend code changes:

As of this morning, the bug is gone! No update required! Looks
like the somehow they pushed the update! I can no longer change the
account in the App Store or iTunes store! This reminds me when I was
beta testing 6.0 and Apple changed the behavior of downloading updates
not requiring a password (they also allowed free apps with no password
for a short while). That didn’t need an update to change either.
They seem to have ways of fixing App Store behavior without needing to
update iOS. I’m still running 6.1 on my devices, haven’t gone to
6.1.2 yet.

Would be nice for an official answer from Apple, but so far, it’s
working correctly! Also, I see redeem and send gift are grayed out
also, at the bottom of the App Store. Same for iTunes Store.

For those unaware, iOS 6 received some beefed up Restriction settings when it was released that allowed users to select “Don’t Allow Changes” for an entire account linked to an iOS device. This option was particularly useful for schools and organizations that wanted to limit a device to a specific account and keep students and others from installing apps not approved by the institution. Without the restriction, students or employees could easily change the iTunes account linked to the iOS device. Unfortunately, as noticed by one frustrated 9to5Mac reader, it seems there are several backdoor methods of bypassing the setting…


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Apple Store also drops prices of refurbished Retina MacBook Pros (now start at $1269) and MacBook Airs

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From 9to5Toys.com:

Following price drops and minor processor upgrades for Apple Retina MacBook Pros this morning, Apple also further discounted its refurbished MacBook Pros. Apple took 15 percent off the MacBook Pros in January, and it dropped the 256GB 13-inch Retina MacBook Pro even more to $1,359 today. Other refurbished Retina MacBooks have been discounted as well. The 512GB 2.9GHz Retina MacBook Pro now sells for $1,779 refurbished. Apple also discounted its 256GB 13-inch MacBook Air to $1,099, and it received a price drop this morning to $1,399 new.


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Apple releases MacBook Pro firmware update 1.7 to address rare battery issue

After releasing an SMC firmware update for most MacBook models last month to address the same battery issue, Apple today released MacBook Pro SMC Firmware Update 1.7 for mid-2010 and early 2011 15- and 17-inch MacBook Pros. The update, available through Apple’s website, addresses a rare battery issue:

About MacBook Pro SMC Firmware Update 1.7

This update addresses a rare issue on some Apple notebooks where a battery that has accumulated more than 1000 charge cycles may unexpectedly shut down or stop functioning.

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Deal Alert: MacConnection drops Retina MacBook Pro 13″ to $1499 ($200 off)

From 9to5Toys.com and 9to5Mac Product Pages:

MacConnection is having a flash sale on the 13-inch MacBook Pro with Retina display knocking $200 off the price. $1499 is the lowest price we’ve ever seen on what many consider to be Apple’s best portable computer. Apple charges $60 less for Refurbished models.

For other configurations, see our MacBook Pro MacBook Air and other product pages.

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WSJ says Apple’s PR goes on offensive as competition heats up

The Wall Street Journal is out with a report today that claimed Apple’s press relations team has tried “a little harder to get its message out” by sending members of the press an increasing number of positive third-party reports about the company. The Wall Street Journal described one of the reports Apple PR sent out as a “study predicting that by 2014, Apple will be as accepted in the enterprise as Microsoft is today.” According to article, Apple has sent out five reports in a month since the starting of 2013, representing quite an increase compared to the past.

Apple issued a press release last month for the minor iOS 6.1 release, as well as the 128GB iPad released today ahead of Microsoft’s new 128GB Surface product. The Wall Street Journal said a person familiar with the matter claimed it’s a “recognition that competition is heating up.”

Apple, and indeed virtually all its competitors, send reporters favorable studies from time to time. But the five reports Apple has sent since the start of the year, mostly related to mobile market share, represent more than recent months… Apple has long been willing to sing its own praises when it needs to, issuing press releases about major milestones, products and sales. So rather than a big shift, the latest moves represent a recognition that competition is heating up, a person familiar with the matter says. Apple also has more to cheer internationally, with growth in countries like China very strong.

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13-inch Retina MacBook Pro for $1515, 15-inch Retina MacBook Pro $1980 at Amazon, Best Buy

From 9to5Toys.com:

Amazon dropped the price of the Retina MacBook Pro to $1999 with free shipping. That’s tied for the lowest price we’ve ever seen on this product. Apple sells the refurb for $100 less (with Tax in more locations which negates the savings).

Amazon also has the 13-inch MacBook Pro for $1515.59. The sale compares with $1469 for a refurb with the same Tax equalizer.

The sale is in response to Best Buy knocking $200 off MacBook Pros (and $20 more off from in-store pickup). The effective price of a 15-inch Retina  MacBook Pro is $1980.

If you are holding out for a MacBook Air, check back with us tomorrow, we’ll have the lowest prices you can find on MacBook Airs across the board.
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Apple releases MacBook SMC firmware updates fixing rare battery issue

Apple released updates today for MacBook, MacBook Pro, and MacBook Air, and they are for a rare issue that causes batteries with more than 1000-charge cycles to shut down or stop working. The updates are available through Software Update in the Mac App Store now. Links to each update is on Apple’s website below:

This update addresses a rare issue on some Apple notebooks where a battery that has accumulated more than 1000 charge cycles may unexpectedly shut down or stop functioning.

MacBook SMC Firmware Update 1.5
MacBook Pro SMC Firmware Update 1.6
MacBook Air SMC Update v1.8

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Parallels 8 beats out VMware Fusion 5 in extensive benchmark analysis

MacTech Magazine, which recently announced its upcoming MacTech BootCamp II, today looked at two of the most popular virtualization products for Mac with an in-depth benchmarking analysis of the most recent versions of Parallels Desktop 8 and VMware Fusion 5. We have seen Parallels 8 come out on top in benchmarks from previous reports, but this is by far the most comprehensive comparison.

MacTech put the two apps to the test in a number of areas including launching various OSes, application performance, 3D graphics tests, Retina Support, and much more. The conclusion: Parallels Desktop 8 won on the majority of general tests and 62 percent of 3D graphics tests.

In the vast majority of our overall tests, Parallels Desktop 8 won. Again, if you count up the general tests (including the top 3D graphics scores), Parallels won 56% of the tests by 10% or more. If you include all the tests where Parallels was at least 5% faster, as well as the balance of the 3DMark06 graphics tests, Parallels increased the lead further.

We recommend checking out MacTech’s lengthy analysis.

Parallels 8 for Mac currently sells for $55 on Amazon, while VMware Fusion 5 is available for as low as $46.99.

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Peak Mac — Will Apple ever sell 5M Macs in a quarter again?


The bad news

Dan Frommer wrote a post that I was going to write but never finished. His is better anyway. The not-recommended TL;DR is: Even though CEO Tim Cook said there were plenty of reasons (5) for the decline of Mac growth, including iMac constraints, Mac sales for the year are heading toward “flat.” From our liveblog, you can hear Cook’s comments specifically:

On declining Mac numbers: Cook: “If you look at the previous year, our Mac sales were about 5.2M. The difference is 1.1… iMac were down by 700k units Y-O-Y…. There were limited weeks of ramping on these products (iMacs) during the quarter.” We left the quarter with significant constraints on iMacs. Our sales would have been significantly higher… Our channel inventory was down by over 100K units at the beginning of the quarter.

–Cook says market for PCs is weak… “we sold 23 million iPads, we obviously could have sold more than this because we could not build enough iPad minis to come into a demand balance… Im sure there was some cannibalization of Macs there.” If you look at our portables alone we were inline with IDC’s projections of market growth.

While not making enough iMacs for Christmas shopping was a significant and uncharacteristic operational misstep, it doesn’t account for the significant drop in Mac sales overall year-over-year and even sequentially. iMacs and desktops in general have been a declining component of the Mac market as MacBooks take over the space, so even a significant drop in iMac sales wouldn’t account for a 20-percent drop year-over-year and sequentially. Apple also released new Mac Minis and 13-inch Retina MacBook Pros in the quarter, and the rest of the Mac lineup (including the Mac Pro) was updated just a few months before the quarter began.

Cook rationalized why Macs weren’t even flat and are “inline with IDC’s projections,” even though Macs have outgrown the market for something like 20 consecutive quarters previously.

Without a major hardware change or drastic price cuts, it is hard to imagine Apple having another 5 million Mac quarter. It would seem that, like iPods a few years ago, Macs have peaked. Apple’s iPods were cannibalized by iPhones.

The good news is that Apple is cannibalizing its own Mac growth (as well as overall PC growth) with its own high-margin iPads—and lots of them. In fact, Macs now represent significantly less than 15 percent of the total of combined numbers (below and corresponding revenues).


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Staples advertises Apple TV for $49, is the office retail giant going to sell Apple products?

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Here’s an interesting find sent by a tipster. Staples, the biggest office retailer in the United States, has a page showing an Apple TV with a list price of $49.99. While that price is very low, we were not able to add it to our cart or check out because the following page said “out of stock” (screenshots below). Staples also recommended a $24.99 Apple Lightning charge and sync cable when you visit the page. In fact, there is a bunch of Apple’s products sitting on “Mockup Pages” section.

What’s going on here?


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Enterprise Mac Storage vendor Active is closing up shop?

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According to a post over at Xsanity, Enterprise Mac Storage vendor Active is closing up shop. The details:

We’ll update when/if we hear more about what’s happening including plans for current Active customers.

Thanks, Aaron!
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Here’s a Mac Pro concept gallery while we patiently wait for Apple to update the real ones

This is what happens when designers have to look down at the same box they had almost a decade ago.

We showed you a detailed modular Mac Pro design concept in September posted by designer Peter Zigich. Today, Zigich is back with another future Mac Pro concept that imagined Apple ditching Intel for a custom Apple-designed ARM CPU, “A10”. We’re not sure Apple is ready to take the jump to ARM in the first major refresh of its Mac Pro line since 2010, but the prospect of a smaller, possibly Mac mini-like design for a new Mac Pro is definitely intriguing. The PCI slots are probably not necessary thanks to Thunderbolt, and Zigich doesn’t rule Intel out entirely. While these specs are maybe not completely realistic for an upcoming Mac Pro refresh, it certainly gets us thinking about what Apple might have planned for its aging Mac Pro design. More images available on Zigich’s website here.

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Shipping times for 21.5-inch iMacs slip to 2-3 weeks from 7-10 business days

Shipping times for the new 21.5-inch iMacs, at least in the United States, United Kingdom, and Canada, had sat at “7-10 business days” since the beginning of December. Following changes to shipping times for the device around the globe last night, Apple has today updated its U.S. site to reflect the new “2-3 week” shipping estimates being quoted. CEO Tim Cook warned in October that the company would experience significant iMac shortages for the full quarter. This pushes delivery for new orders of iMacs (27-inch included) well into February.

We expect Cook to provide updates on shortages later this week during the company’s earnings call.

Apple job description outlines goal to evolve Siri as a distinct, recognizable character

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Apple hinted in November at its plans to add more features to Siri in the near future with a job listing that sought individuals to translate Siri into a handful of new languages. Today, we came across another interesting job listing posted by Apple. This one looks for a creative writer skilled in character-driven dialog to “help the Siri team evolve Siri as a distinct, recognizable character.” Not only will the person help “refresh and refine” existing Siri content, Apple is also looking for someone to “develop and write original dialog to support new Siri capabilities.”

Apple clearly thinks Siri’s personality and lifelike AI is just as important as her functionality, noting in the job ad that “Siri’s known for ‘her’ wit, cultural knowledge, and zeal to explain things in engaging, funny, and practical ways.” It looks like Siri’s witty responses will be something that Apple continues to focus on to differentiate Siri from the competition.

We’re looking for a uniquely creative individual to help us evolve and enrich Siri, our virtual personal assistant. Siri’s known for ‘her’ wit, cultural knowledge, and zeal to explain things in engaging, funny, and practical ways. The ideal candidate is someone who combines a love for language, wordplay, and conversation with demonstrated experience in bringing creative content to life within an intense technical environment.


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ThinShield, the world’s lightest and thinnest iPhone 5 case

Sanho, the company behind the HyperJuice external battery products for Mac that we’ve reviewed in the past, just unveiled its latest lineup of products at CES 2013. While introducing some minor updates to its HyperJuice 2 unit (it’s now 12W instead of 10W), as well as the second generation of its iUSBport product (now with two USB ports), I was surprisingly most impressed by its new eco-friendly polypropylene iPhone 5 case…

At just 0.3mm thin, ThinShield is the world’s lightest and thinnest case, according to Sanho, and will land in Q1 for just $20. Normally, I do not use a case on my iPhone 5 (I opt for a leather sleeve instead), mainly because of the extra bulk it adds to the device. Good news for those that come from the same line of thinking: the ThinShield is barely noticeable, especially when throwing black on black or white on white (depending on your iPhone color). Thanks to ThinShield, you’ll soon be able to get scratch and dirt protection while still being able to enjoy the design Apple intended. I’ll be first in line.

The Apple Store begins offering Retina 15″ MacBook Pro refurbs starting at $1869

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From 9to5Toys.com:

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This evening, Apple began offering refurbished Retina MacBook Pros at the online Apple Store at significant 15% discounts, yielding savings of over $500 on high end models (below). 15-inch Retina MacBooks normally retail at $2200 but we’ve seen them as low as $2,000 (which is also the EDU discount price).

Apple refurbished products are packaged and look like new and come with the same one year of AppleCare. See all of the best prices on Apple Products on our Apple product pages.

Thanks Jason!
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‘Fix’ allows you to install Windows Bootcamp on new iMacs with 3TB drives

If you haven’t heard, those who purchased a new Mac with Apple’s built-to-order 3TB hard drive option found themselves unable to utilize Boot Camp assistant to install Windows. Boot Camp Assistant is currently limited to drives up to 2.2TB. Apple hinted that support might come at a later date, but TwoCanoes shares a step-by-step guide for getting the job done in Boot Camp until then:

Since it is not possible to get around the 2.2 TB limitation with booting Windows, it is possible to organize the partitions so that Windows is the last of the first four partitons and is within the first 2.2 TBs of space on the drive. Since the Mac can see the remaining space above the 2.2 TB limit, this space can be used for addtional storage space for OS X.

In order for Windows to boot successfully and still be able to utilize all of the available space on a 3 TB (or larger) hard drive, Windows must be installed on the fourth partition. You can use Disk Utility to create the partition, but since Disk Utility does not show hidden partitions, it can be difficult to see what is going on if some partitions are hidden. To have Disk Utility show hidden partitions, open Terminal and run the following command:

You can get the full instructions on TwoCanoes here.