Apple and AT&T have started sending out $40 checks to U.S. customers who bought or ordered a first-generation iPad with 3G capabilities before June 7, 2010. A ruling was made in September in a class action lawsuit stemming from AT&T’s elimination of an advertised unlimited data plan about a month after it was introduced. The checks have started to arrive in customers’ mailboxes, as per 9to5Mac. AT&T is also offering a $20/month discount on its 5GB monthly data plan for consumers who didn’t sign up for any other AT&T data plan.
After denying a report earlier in the week that iOS is prone to “back door” access, Apple has put forth a new document outlining three diagnostic capabilities, and how they’re used. “Each of these diagnostic capabilities requires the user to have unlocked their device and agreed to trust another computer,” the report states. “Any data transmitted between the iOS device and trusted computer is encrypted with keys not shared with Apple. For users who have enabled iTunes Wi-Fi Sync on a trusted computer, these services may also be accessed wirelessly by that computer.”
Apple statement denies working with "any government agency ... to create a backdoor in any of our products" pic.twitter.com/5psXWtOXW2— Tim Bradshaw (@tim) July 21, 2014
This comes after Apple issued a denial to the Financial Times, stating it “has never worked with any government agency to create a backdoor in any of our products or services.”
Apple’s conference call after announcing its Q3 2014 financial results kicked off with Apple CEO Tim Cook discussing Yosemite, iOS 8, and Swift. Cook also touched on CarPlay, HealthKit, HomeKit, in addition to the company’s new partnership with IBM.
Getting to the financial results, Cook announced that Apple set a June quarter record, with iPhones also setting a new third quarter record. “iPad sales met our expectations but we realize they didn’t meet many of yours,” Cook said, noting an overall decline in the tablet markets while moving on to citing surveys in which customers expressed satisfaction with iPad.
Cook expressed excitement with Apple’s acquisition of Beats, citing Beats’ subscription service, “access to rare talent,” and a growing lineup of products. As he’s done in the past, Cook briefly referenced upcoming new products and services.
Apple CFO Luca Maestri talked about the iPhone and its impressive results in the quarter. As for the iPad, he announced increased sales in the Middle East, China, and India, while adding that such growth was offset by lower sales in “more mature markets.” iTunes revenue was up to $2.6 billion. Apple expects $37 billion to $40 billion in revenue next quarter, with a gross margin between 37 and 38 percent. Maestri said he expects a busy fall, as Apple is “very excited” about what’s in the pipeline.
When asked about decreased tablet sales, Cook said that “significant innovation” can still come to the iPad, “and we plan on doing that.” Cook believes there’s a “substantial upside” in iPad sales within business, which led him to remark on the recently announced IBM partnership. “I honestly believe the opportunity is huge,” he said.
On sales in China this quarter, Cook said, “We thought it would be strong, but it well went past what we thought.” He noted that unit growth was “off the charts.”
Asked about trade-in programs for iPhone, Cook said trade-ins are “hugely beneficial for our ecosystem,” as those phones often go to “price sensitive” customers. Cook also believes the cannibalization factor is low due to that price sensitivity, while pointing out the high resale value of Apple products. But he also noted, “It’s very different to quantify with certainty.”
Cook said iPhone 5c had the highest growth of the current three iPhone tiers in the quarter.
When asked how Apple is changing, in reference to the Beats acquisition and the IBM partnership, Cook said that although the company is always on the lookout for acquisitions, “we don’t let our money burn a hole in our pocket.” Again, Cook referenced Beats’ subscription service and products, while taking the time to note that Beats has “a very rare set of talent that we think can do great things in Apple.”
Apple reported its third quarter 2014 financial results today, selling 35.2 million iPhones, 13.27 million iPads, and 2.9 million iPods. The company posted quarterly revenue of $37.4 billion and quarterly net profit of $7.7 billion, or $1.28 per diluted share. In Q3 2013, Apple had revenue of $35.3 billion and net profit of $6.9 billion, or $1.07 per diluted share. Gross margin was 39.4 percent compared to 36.9 percent a year ago. International sales contributed to 59 percent of the quarter’s revenue.
“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,” Apple CEO Tim Cook said. “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.”
“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,” Apple CFO Luca Maestri said. “We have now taken action on over $74 billion of our $130 billion capital return program with six quarters remaining to its completion.”
Despite the year-over-year increase in iPhone unit sales, the results notably included a year-over-year decline in iPad sales, and a modest 6% sequential increase for iPods. iTunes/Software/Services and Accessories categories both posted healthy 12% gains.
Simpsons World and FXNOW will be coming to the Apple TV, according to recent reports. TV writer Jason Lynch tweeted that FXNOW, the on-demand video service for FX, FXX, and FXM, would debut on Apple’s set-top box “in the next 12 months.” The recently announced Simpsons World digital channel — which launches in October and will feature all 522 episodes of The Simpsons along with additional content — will also be coming to the set-top box, HitFix reports. HitFix’s Alan Sepinwall told iLounge via Twitter that Simpsons World would be a separate app from FXNOW on Apple TV. Both FXNOW and Simpsons World will require cable authentication. Simpsons World is set to launch in October, and it will be limited to FXX subscribers in the U.S, though it’s unclear if the Apple TV channel will launch at the same time as the also-announced iOS app.
Update: Lynch subsequently posted that Simpsons World will not be a separate iOS app, but rather will be incorporated into the FXNOW app.
Roughly six months after we covered the original Airframe car vent mount, Kenu has released Airframe+ ($30), a tweaked version capable of supporting larger devices. Now capable of expanding to fit devices with up to 6" screen sizes (including both of the rumored iPhone Air/6 models), Airframe + ditches the gray accents of the original model in favor of black, and offsets the car vent mounting point to be closer to the center of a larger device. Kenu suggests that you insert a credit card into its back to use it as a desktop stand. Fully case-compatible and as handsome as before, it sells for a $5 premium.
Apple’s new Stickers commercial for the MacBook Air is one of our favorite ads out of Cupertino in a long time. Featuring quick shots of dozens of different Airs decorated with stickers, it shows how people actually personalize their Macs; not everyone keeps them pristine. We’ve found Etsy to be the best source for these stickers, with literally tens of thousands available to choose from at various price points.
Apple is asking its suppliers to manufacture between 70-80 million units of its upcoming two new iPhones combined by Dec. 30, The Wall Street Journal reports. As noted in the report, this represents a significant step up from last year’s initial order of 50-60 million units for the iPhone 5s and 5c. It still appears there could be a delay with the larger model, as display makers are “struggling to improve the production of the larger 5.5-inch screens.” The in-cell technology used to create a thinner, lighter display is reportedly causing the complications, and using sapphire instead of glass could also present more issues. Additionally, sources said that Apple is asking component makers to prepare enough parts for 120 million new iPhones by the end of the year, in case the displays have a high failure rate.
Apple was granted a patent today for an electronic wristband that can be coupled to an electronic wristwatch. The wristband, which can interact with the watch, can include digital sensors, wireless hardware, and other electronics, and could respond to gestures such as shaking and tapping. Within separate embodiments of the patent, the watch could be integrated into the wristband, or the two pieces could be removably secured together. The device shows “iTime” on the watch face in one illustration.
The device is shown as being able to interact with a mobile phone, portable computer, and desktop computer. This new patent, which was filed in 2011, is simpler than Apple’s other well-known “wearable accessory device” patent published last year. [via Apple Insider]
There are only a few days left to pre-order The Complete iOS 8 and Swift Developers Course for only $79 in our iLounge Deals. At 92% off the regular price of $998, this deal gives you an opportunity to get ready for iOS 8, preparing you to develop for the new platform by taking you through building 14 iOS 8 apps using Apple’s new Swift programming language, for a total of 36 hours of elite training. Your pre-order now will gain you access to the course as soon as iOS 8 is released to the public this fall, and the bundle also includes The Complete iOS 7 Course as a bonus so you can build an iOS development background in the meantime.