Apple That

With all of the new Android devices being released almost weekly, and the major decline in Apple’s stock since last fall, you would think that Apple is about to go out of business. This, of course, is an exaggeration as Apple just release their Q2 (Second Quarter) earnings numbers on Tuesday and they beat Wall Street’s expectations. Apple accrued a profit of $9.5 billion and a revenue of $43.6 billion. These revenues are slightly higher than what experts were predicting, but not quite as high a profit as Apple has had in the past.

This is welcome news for the technology giant that has seen its stock drop over 300 points from a high of  $705 a share to a low of under $400 a share since last September. Much of the concern has been over the fact that iPhone sales have been in decline, though still a massive source of revenue. iPhone sales for the last quarter were over 37.4 million units. While this is a great sales number, the growth of iPhone sales has slow quite a bit. One product, however, that showed a tremendous growth rate was the iPad. Compared to last year, iPad sales were up 65% to over 19 million units sold. The main thing that can be taken away from these figures is that Apple is still selling millions of products, but some new, “innovative” features may be necessary for continued growth.

The increased competition from new, high quality Android phones such as the Samsung Galaxy S III has had a major impact on iPhone sales. Many experts are wondering if Apple will be able to keep up with the “cutting edge” Android devices that are taking more and more of the smartphone market. Many are also speculating if Apple will release an iPhone with a larger display this year to keep up with the trend of larger smartphone screens, but CEO Tim Cook shot many of those theories down. Cook, after being asked about possibly shipping an iPhone with a 5 inch display, went on to list many of the tradeoffs and problems that come with a display that size. He detailed resolution, color quality, brightness, and so on as being issues that would keep Apple from shipping a display that size “while these tradeoffs exist”. This may sound ridiculous to those Android customers that have displays over 5″, but Apple has shown that they are “slow” to adopt a trend until it is proven and established. The best example of this would be their decision not to implement LTE connectivity into their devices until it was a “proven” and widespread standard.

One thing is certain after this reporting of revenue from Apple, they are still an extremely valuable company. Posting a revenue of over $43 billion is something that is truly “mind-boggling” and is almost hard to comprehend. That being said, Apple will need to “up its game” with their new product releases and updates this year. One area that both customers and critics agree needs to be updated is the operating system on Apple’s mobile products, iOS. Since the iPhone’s debut in 2007, iOS has been updated each year with a host of new features and abilities but has not had a drastic U/I (user interface) overhaul. Many are pointing to the customizability of the Android operating system as something that Apple needs to adopt in their new version of iOS that will most likely be released this fall. It remains to be seen what Apple will actually do, but the anticipation for their updated products and software is sure to be widespread.

Sources - http://www.theverge.com/2013/4/23/4258068/apple-posts-9-5b-profit-on-43-6b-in-revenue, http://www.theverge.com/2013/4/23/4258544/tim-cook-says-5-inch-iphone-display-would-have-too-many-tradeoffs

I love buying things online. Not only is it possible to find almost anything you need and have it shipped directly to your house without having to talk to anybody, wait in line, drive to the store and possibly have the misfortune of having your desired purchase sold out, but you can do it without wearing any pants! The only problem is that you typically don’t get the satisfaction of having it arrive immediately as you would if you had bought it in a store.

However, that isn’t the case if you want to buy a new iPhone. According to the company’s website, if you purchase an iPhone online from Apple, you can receive free next-day shipping! The deal is valid for the iPhone 5, iPhone 4 and iPhone 4S but restricts customers to two phones per order.

Apple already offers free standard shipping on orders that exceed $50, though next-day shipping normally incurs an additional cost depending on the size of your particular order. What makes this deal even sweeter is that individuals who decide to purchase the iPhone 4 may be able to get the phone and have it shipped for free as the phone is already free to users who sign a new two-year contract.

The only thing wrong with this picture is that there is no specific information on the site that indicates when this promotion will end, which means you should probably take advantage of the deal as soon as you are able. Apple has, in the past, offered free next-day shipping along with free expedited shipping, though those offers were around December in order to boost holiday sales numbers.

This might be a way for Apple to try and clear some inventory space as rumors of a cheaper iPhone 5 (possibly the iPhone 5S) continue to circulate. Recent reports on that front state that Apple will be releasing sometime towards the end of June, though Apple has naturally said nothing about such plans.

According to BTIG Analyst Walter Piecyk, Apple needs to launch a new, low-cost iPhone in order to boost earnings and market share. Piecyk, in an investors note, stated that he has raised his opinion on Apple stock from “neutral” to “buy” based on the assumption that Apple will launch a low-cost iPhone before the end of 2013.

Piecyk predicts that nearly 36.5 million low-cost iPhones will be sold in fiscal 2014 at an average, non-subsidized price of $300. Should that ring true, the lower-cost iPhone could add $11 billion in revenue to Apple’s next fiscal year, which officially begins in October.

According to Piecyk, “As we have previously detailed, we believe a product that addresses the more than 70% of global wireless subscribers that are unsubsidized pre-paid is necessary in order for Apple to grow its EPS next year. This is not rocket science and our belief is based on basic logic, not questionable ‘channel checks’ or trips to Asia.”

The problem with a low-cost iPhone is Apple’s commitment to “only making great products”. However, Piecysk doesn’t believe that this would compromise Apple’s philosophy, noting successes like the iPad Mini and iPod Nano as testament. In addition to that, Piecyk also had some colorful words of wisdom for Apple stockholders should the company fail to deliver a low-cost iPhone.

“If the management team does not follow this basic logic, as we expect they will, investors will need to push for a new management team. At the moment they have earned the benefit of the doubt that they will go after this market,” Piecyk added.

On the flipside, Piecyk also believes that a larger-screened iPhone would also help Apple win more customers. He also confessed that he believes that Galaxy Note from Samsung is too big for him, though that a large screen like the one on the upcoming Galaxy S4 and the HTC One “look great and could generate a lot of interest in the upcoming quarters.”

Source: CNET – Apple needs a low-cost iPhone, says analyst

The iPhone 5 launched in China back in December with the company expecting it to make waves like it did in the United States. However, customers in China appear to be a bit smarter than the ones in the U.S. and don’t just run out and buy the next smartphone Apple releases just because of the symbol on the back.

The Cupertino company’s market share of smartphones in China hardly increased at all during last year’s fourth quarter. Apple retained the position as the sixth largest smartphone vendor in China that it had in the third quarter. Even though market share increased to 8.5%, which was up 0.5%, it still wasn’t enough to make a significant impact.

Samsung, on the other hand, took the top spot with a 16% market share and was followed by Chinese vendors Lenovo, Yulong Computer Telecommunication Scientific, Huawei and ZTE. Booming growth in China’s smartphone segment overall was a detriment to Apple’s performance in the country as shipments reached 65 million units and growth was driven by low-end handsets priced relatively cheaply.

According to Canalys Analyst Nicole Peng, “The iPhone 5 is doing very well, and you saw for the first time Apple announced it had sold 2 million iPhones in the first weekend of sales in China.” Peng also added that quarter-over-quarter Apple’s iPhone shipments in China were up 30%.

However, Apple’s entrance into the Chinese market is still hindered by the absence of a low-cost smartphone in Apple’s catalog. In addition to that, the company has also failed to make a deal with China’s largest mobile carrier to offer Apple phones. “Apple can only do so much,” Peng added. “Lenovo, Huawei, ZTE, their market shares have been supported by low-end models.”

The smartphone market in China is so large that Lenovo became the world’s top five vendor in the fourth quarter simply because of sales in the country. In addition to that, 98% of Lenovo’s smartphone shipments of 9.5 million phones went to China.

Source: Computer World – iPhone 5 fails to boost Apple’s market share in China

A new exploit has recently surfaced in Apple’s iOS operating system for its mobile devices. The exploit itself allows users to gain access to an iPhone locked via passcode even if they have no idea what the passcode is. Obviously this is a huge defect in the programming as it makes having a passcode completely irrelevant.

The good news is that Apple is well on its way to releasing a patch for this exploit. According to a recent statement released by the company, “Apple takes user security very seriously. We are aware of this issue and will deliver a fix in a future software update.”

Unfortunately, Apple was unable to give a specific time frame on when users can expect the update and its subsequent fix of the exploit. In addition to that, the company also didn’t offer any information on a “quick fix” that would temporarily allow users to secure their iPhones until the update.

The hack, which was published a month ago by a user on YouTube, recently surfaced and opens up access to the iPhone, allowing the hacker to listen to the phone’s voicemails, make calls and view contact information. However, any attempt to go beyond that information will send the hacker back to the passcode screen.

The latest update to Apple’s iOS, v6.1.1, went live earlier this week but was only a supplemental update for iPhone 4S users and only fixed an issue with cellular connectivity and reliability. All other users have the ability to update to version 6.1, which adds 4G LTE support for more carriers on Apple devices as well as a feature that allows users to purchase movie tickets from Fandango after searching for them using Siri.

This is definitely a critical flaw in the iOS for Apple. The fact that an iPhone user’s device can be accessed to listen to voicemails, make calls and view contact information is something that most users will find unnerving. Apple’s best course of action is to deliver a fix as soon as possible on this issue.

You’re probably tired of hearing about Apple patent news by now, but I promise this one is different. How so, you may ask? Well, this piece of information isn’t about Apple suing some other smartphone company for patent infringement, it’s about one of Apple’s very own patents coming under fire by the U.S. Patent and Trademark Office following a re-examination.

The patent covers touch-screen technology for Apple, though the U.S. Patent and Trademark Office recently ruled that all of the 20 claims included in the patent were invalid. The decision, however, is not final so things could still change in favor of Apple or against the Cupertino patent suit prince even more.

This is the second such Apple patent to be deemed completely invalid by the U.S. Patent and Trademark Office following re-examination. A similar ruling for an Apple patent, one that covered the tech giant’s rubber-banding bounce effect, came in late October and is also subject to appeal.

One thing that is of great note is that late Apple CEO and Co-Founder Steve Jobs is listed as the chief inventor, along with 24 others, of the touch-related technology that is listed in U.S. Patent No. 7,479,949. Apple filed for the patent back in April of 2008, which was granted only nine months later. In addition to that, this patent was one of three used against Motorola in a recent patent suit, which was tossed out of court last week.

This could be a little bit of Karma coming Apple’s way as the company has been very pro patent lawsuit these days. Apple has gone after big name companies like Samsung, Motorola and even Microsoft in patent lawsuit cases, only achieving victory (as of now) over Samsung.

Source: CNET – Another Apple touch-screen patent in trouble

Despite the fact that the Samsung Galaxy is the world’s best selling smartphone, demand for the iPhone 4SXL, I mean iPhone 5, is still through the roof. Demand was so high, as a matter of fact, that Apple’s production plants, specifically Foxconn, were unable to keep up with the demand, severely angering Apple. Thankfully (for Foxconn employees at least) it only took about two months for Apple to almost catch up with iPhone 5 demand.

One of the top Apple analysts for Piper Jaffray, Gene Munster, has been tracking iPhone 5 availability at 100 Apple Stores around the United States for the past month. In that time, Munster has reported that there have been significant improvements in the past 10 days.

As of Tuesday, iPhone 5 smartphones running on AT&T were in stock at 82% of Apple stores with 72% of Verizon stores having the device in stock and 92% of Sprint stores having the newest Apple handset. In addition to that, shipping times for customers ordering online have decreased to about two weeks after having been stuck at three to four weeks since the phone launched on September 21.

According to Munster, Apple is “nearing full availability” for the iPhone 5 just in time for the holidays. The iPhone 5 debuted exactly two months ago to much fanfare, despite it essentially being the iPhone 4S with a larger screen and 4G LTE connectivity.

However, opening weekend sales were lower than expected due to supply constraints. Since then, Apple’s stock of the phone has been hit by concerns that the company’s manufacturing partners are unable to produce the latest iPhone fast enough to keep up with consumer demand.

The biggest question that Apple is facing now is whether or not the increased availability of the iPhone is due to an increased productivity from Apple’s manufacturing plants or a decreased demand for the phone which, to be honest, wasn’t as revolutionary as people expected it to be.

Source: Mashable – Apple is Finally Catching Up to iPhone 5 Demand

Foxconn, Apple’s controversial manufacturer of almost all things with the prefix “i” isn’t producing as many iPhones as Apple wants, nor are they producing them fast enough according to the company’s chairman. Foxconn is arguably the biggest supplier of parts and construction for Apple’s iPhone, iPad, iPod, etc…

According to Foxconn Chief Terry Gou in a recent interview with Reuters, “It’s not easy to make the iPhones. We are falling short of meeting the huge demand.” In addition to that, Gou was unable to say which iPhones are actually difficult to produce as Apple is still currently selling three different models: the iPhone 4, iPhone 4S and iPhone 5.

Despite not revealing the product, it is presumed that Gou was referring to the latest iPhone 5. An unidentified Foxconn official told The Wall Street Journal last month that producing the iPhone 5 is “very complicated”, causing supply issues. The official went on to say that the smartphone is “the most difficult device that Foxconn has ever assembled.”

Apple’s iPhone 5 is thinner and taller than its predecessors and also comes with a few improvements over the 4S, including 4G LTE support and a new, smaller Lightning port. That means that Foxconn’s workers are putting a lot of components into an increasingly smaller shell.

Apple is definitely displeased. The iPhone 5 is scheduled to ship in three to four weeks for people who order it now with customers who are actually going to the store to buy one facing similar wait times. Apple is all about getting its technology into as many hands as possible as fast as possible, so set backs like this are almost inexcusable, especially with other smartphones on the market, like the Galaxy S III, being highly favorable replacements to the iPhone.

Source: CNET – Foxconn chief: We can’t keep up with iPhone demand

Of all iPhone 5′s shortcomings, one of them may actually be a benefit to another company. This shortcoming comes by way of the iPhone 5′s camera with its purple lens flare problem. Fotodiox, based in Illinois, has just developed a new iPhone 5 case that promises to “greatly reduce purple lens flare”.

There isn’t anything really revolutionary or mind blowing about the case that allows it to accomplish this feat. The case simply has a piece of rubber that acts as a lens hood to keep stray light from coming in. The rubber piece is held in place by the actual case, which is designed to keep the back and sides of your phone from incurring damage.

If you are unfamiliar with the purple lens flare then count yourself lucky. The problem is that a purple color usually shows up on the edges of photos when a light source is immediately nearby. Unfortunately, the problem can also occur even when the lights are off frame. In addition to that, it can affect both pictures and videos.

Many Apple customers have been complaining about the issue ever since the phone launched last month. A support document that went up on Apple’s website noted that “most small cameras” exhibit this effect when there’s a nearby light source that is out of the frame of view.  Apple also stated that you would need to readjust your camera or block off any light using your hand to get rid of the problem completely.

If you are suffering from purple lens flare on your iPhone 5 and you want a semi-cheap alternative that also protects your phone, then you should look into Fotodiox’s camHoodie case. The case is available now from Fotodiox for only $24.95.

Source: CNET – New iPhone 5 case offers to fix purple flares