Reporting its second quarter financial results today, Apple said it sold 10.89 million iPods during the quarter, compared to sales of 11.01 million iPods in the year-ago quarter, and down 48 percent from the previous quarter. Apple also sold 8.75 million iPhones in the quarter, a 131 percent increase year-over-year, and up from 8.7 million units in the prior quarter. The company posted revenue of $13.5 billion and net quarterly profit of $3.07 billion, or $3.33 per diluted share, compared with revenue of $9.08 billion and net quarterly profit of $1.62 billion, or $1.79 per diluted share in Q2 2009. International sales accounted for 58 percent of the quarter’s revenue. Sales of Other Music Related Products + Services were up 27% from the year-ago quarter, and 14% from Q1 2010, to $1.3 billion total. That category includes iTunes Store sales, iPod services, and revenues from Apple and third-party iPod accessories.
Notably, the numbers from Q2 2009 are different from those originally reported due to Apple’s change in accounting rules that sees the company now recognize “substantially all of the revenue and product costs from the sales of iPhone and Apple TV at the time of sale,” instead of accounting for the sales over a 24-month period.
“We’re thrilled to report our best non-holiday quarter ever, with revenues up 49 percent and profits up 90 percent,” said Steve Jobs, Apple’s CEO. “We’ve launched our revolutionary new iPad and users are loving it, and we have several more extraordinary products in the pipeline for this year.”
“Looking ahead to the third fiscal quarter of 2010, we expect revenue in the range of about $13.0 billion to $13.4 billion and we expect diluted earnings per share in the range of about $2.28 to $2.39,” said Peter Oppenheimer, Apple’s CFO.
Apple has released the second beta version of the iPhone OS 4 Software Development Kit for the iPhone and iPod touch. As with the prior beta release, a main Xcode and SDK beta is available for download, as are pre-release builds of the iPhone OS 4 software for the iPhone 3G and 3GS, as well as the second- and third-generation iPod touch. Both the new SDK and pre-release builds are available now for download by registered iPhone developers from the iPhone Dev Center.
Sena Cases has introduced a quartet of new cases for the Apple iPad. The Executive Sleeve is a pouch-style case featuring a leather exterior, a padded protective middle layer, accent stitching, velvet inner lining and a top flap with magnetic closure. It sells for $80, as does the Folio, a vertical flip-open case offering the ability to use the iPad while in the case, a leather exterior, an integrated stand, cut-outs for access to ports and controls, interior pockets for cards and checkbooks, a transparent pocket for an ID card, velvet lining, and a snap closure.
The Zipbook is a clamshell-style case with an integrated stand, leather exterior, leather lining with shock absorbent padding, flexible straps to hold the iPad in place, and a zippered closure. It is also priced at $80. Finally, the Ultraslim is a slim sleeve-style case offering a leather exterior and velvet lining. It sells for $51; all of Sena’s new cases for the iPad are available for pre-order now.
Princeton University has published a document outlining the iPad’s wireless networking issue that has led the school to block several of the devices from its network. According to the document, the iPad sometimes fails to release its IP address within the time allotted by the school’s Dynamic Host Configuration Protocol (DHCP) server, posing a potential problem for other devices that are assigned the same IP address by the server once the iPad’s lease has expired. Specifically, the problem is reproducible by allowing the iPad to lock its screen before its DHCP lease renewal time, and allowing it to remain in that state until after the lease has expired. The university is currently working with Apple to provide technical data which may be used to resolve the issue; it is also working with individual iPad owners, pointing them to a workaround for the issue. To date, Princeton has blocked only nine iPads from its network, some of which have since been unblocked; of the 41 iPads on the campus network, 25 have exhibited the issue.
Apple has posted two new iPhone 3GS TV advertisements online. Both new spots continue Apple’s recent trend of iPhone advertisements that are more testimonial in nature, while featuring a single iPhone using a variety of apps in front of a white background. “Dog Lover” features a female narrator talking about searching local dog shelters to find a new pet, taking and sharing photos, finding nearby dog parks, and checking a monitor video feed while away. “Backpacker” features a male narrator talking about a trip to Spain, during which he checked for hostels, shared pictures, and downloaded and used a translation app. Both advertisements are available for viewing now on Apple’s website.
Apple has begun to ship its iPad Camera Connection Kit to customers who pre-ordered the accessory. Unlike other Apple iPad accessories, the Camera Connection Kit wasn’t available for pre-order until March 29, and was listed as shipping in “late April;” a shipment notification received by iLounge claims the dongle set will arrive by April 22. The iPad Camera Connection Kit includes two separate 30-pin connectors, one with an SD card slot, and the other with a USB port that can be used to attach most digital cameras. A recent report claimed that the USB-to-iPad connector may also provide support for USB audio devices, although this has yet to be confirmed. For more information on the Apple iPad Camera Connection Kit, see our First Look article.
Apple has announced that iPad Wi-Fi + 3G models will be delivered to U.S. customers who pre-ordered in time for “late April” delivery on April 30. The new models will also be available at Apple retail stores the same day beginning at 5:00 p.m. As with the iPad Wi-Fi, Apple retail stores will offer a free Personal Setup service to each customer who buys an iPad Wi-Fi + 3G at the store, including helping them to setup email and load apps. Apart from selling for $130 more than their Wi-Fi-only counterparts, the iPad Wi-Fi + 3G models are also 0.1 pounds heavier, feature a prominent black strip at the top of back plate for antenna access, offer up to nine hours of web surfing over 3G, and are slightly larger than the Wi-Fi-only models.
Apple has been sued by a California woman over what she claims are false-positive readings on the iPhone’s moisture sensors. InformationWeek reports that Charlene Gallion of San Francisco claims to have had two separate iPhone units fail within six months of each other, and was denied warranty coverage due to triggered sensors. Gallion claims that neither of the units was ever subjected to water damage. The suit itself states, “As a result of Apple’s improper application of the Liquid-Damage Exclusion, Apple sells [devices] with the intent to exclude them from the warranty coverage Apple promises consumers it will provide—even when consumers pay extra for Extended Warranty coverage—simply because their Liquid Submersion Indicator has been triggered, without any attempt by Apple to verify whether the Class Devices actually have been damaged as a result of submersion or immersion in liquid.” Overly-sensitive moisture sensors have been a problem for some iPhone customers in the past; a report from September 2009 claimed that Apple’s company protocol when responding to a customer with a unit that has had its external sensors triggered is to say the warranty is now void and turn the customer away.
Update: Upon obtaining a copy the actual filing, iLounge has learned that Gallion has filed a class action suit, and is seeking both actual and punitive damages.
Apple has launched a new Apple Headphones with Remote Replacement Program for units included with certain third-generation iPod shuffle models. According to the program’s page, “Apple has determined that the Apple Headphones with Remote included with the iPod shuffle (3rd gen) may fail under certain conditions.” The page claims that a “very small percentage” of iPod shuffle owners had experienced the issue, and that the headphones were distributed with iPod shuffles made between February 2009 and February 2010. “If your headphones stop working or work intermittently as described below, Apple will replace them, free of charge, for two years from date of purchase,” the page states.
Apple lists several symptoms for failing headphones, including non-responsive or intermittently working controls, unexpected volume changes, and unexpected voice feedback. According to the program page, the serial number ranges for the iPod shuffle units with covered headphones are xx909xxxxxx to xx952xxxxxx and xx001xxxxxx to xx004xxxxxx. Notably, the page also states that Apple’s In-Ear Headphones with Remote and Mic and the company’s Earphones with Remote and Mic are also eligible for coverage under the program if they exhibit the listed symptoms. Failing iPod shuffle headphones have been the source of customer complaints since the third-generation model was released last year; Apple was sued in a class-action lawsuit over the issues in March. [via TUAW]
A supposed fourth-generation iPhone has been found in the wild, and has since been photographed and disassembled. Gizmodo reports that the unit was found in a bar in Redwood City, CA, in a case that made it appear to be an iPhone 3G or 3GS. While it will display a connect to iTunes screen, and is recognized by Xcode and iTunes as an iPhone — with different product identifiers than any current iPhone model — it appears the device was remotely wiped by Apple prior to Gizmodo receiving the unit, and since there is no build of the iPhone OS publicly available for this model, it is currently non-functional. The unit features a drastically different design than current iPhone models, with a thinner body, rounded corners, nearly flat aluminum sides, and a flat back plate that appears to be made of either glass or ceramic.
Notable features include a front-facing camera, a larger rear camera lens with flash, a micro-SIM slot, now mounted on the side, what appears to be a secondary microphone near the headphone jack, possibly for noise cancellation, individual volume up/down buttons, a slightly smaller, but seemingly higher resolution screen than the iPhone 3GS, and a 16% larger battery. Upon disassembly, Apple-labeled internal components were found, as well as a much smaller logic board. While it is possible that this will be the final design of the fourth-generation iPhone, it is also possible that this is simply a prototype unit; in any case, many of the new features and the overall design are expected to carry over to the final device.
According to Apple’s online store, new pre-orders of the iPad 3G will not ship by the end of April. The store’s iPad page lists new Wi-Fi + 3G orders as shipping by May 7, while the already-released Wi-Fi models are shipping in 5-7 business days. Apple has been accepting pre-orders for the iPad 3G since it opened orders on March 12, but up until this point, all 3G pre-orders had been expected to ship later this month. Apple recently began emailing customers who pre-ordered an iPad 3G, confirming that their devices would ship in “late April.”
Apple has filed a lawsuit against Kodak in California Northern District Court claiming patent infringement. In conjunction with the lawsuit, Apple has also filed a complaint against Kodak with the U.S. International Trade Commission (ITC). According to the ITC Law Blog, the technologies in the Apple patents Kodak is allegedly infringing “relate generally to advancements and innovations in the fields of image processing, power management, and memory architectures in portable digital devices.” Apple is claiming a number of Kodak products infringe on its patents, including the Kodak Z series, M series, and C series of cameras, as well as the company’s Zi6, Zi8, Zxl, and Zx3 video cameras. Kodak filed a lawsuit and ITC complaint against both Apple and BlackBerry-maker RIM in January, claiming that the iPhone and some BlackBerry models infringe on a patent covering technology for previewing photos; the ITC later said it would consider Kodak’s claim against the two companies, but has yet to announce a decision.
The National Hockey League has released an official iPhone app for hockey fans. NHL Ice Time 2010 allows iPhone and iPod touch users to track live game scores, player profiles, player and team statistics and schedules for upcoming games directly on their devices. Users can view live scores and in-game stats for ongoing games, access a full season schedule, view standing by division and even view game photos. The application also provides a unique Ice Tracker feature that allows fans to view locations of goals, hits and saves for live games on a virtual hockey rink. NHL Ice Time 2010 Free is available from the U.S. App Store as a free download. It is not presently available outside of the U.S.
Apple has started sending out emails to customers with iPad 3G pre-orders, reassuring them that their device will ship later this month. The email reads, “Thank you for your recent order of the magical and revolutionary iPad 3G. We would like to confirm that your order will be shipped in late April as communicated at the time you placed your order. You will receive a confirmation notice when your order has shipped.” Notably, this is the first time Apple has openly referred to the 3G-equipped model as the “iPad 3G” instead of the “iPad with Wi-Fi + 3G;” it is unclear whether Apple will begin using this new name in a broader sense.
If you haven’t yet entered our Yamaha Earphone Giveaway, there’s still time to do so. In our Giveaway of the Month for April, iLounge and Yamaha are giving away 20 pairs of Yamaha EPH-30 Earphones. To enter, simply fill out and submit the form on the giveaway page—the giveaway will end on April 30, 2010 at 11:59PM Pacific Time. Good luck!
Norwegian prime minister Jens Stoltenberg has been using an iPad to manage the situation in his home country as he is currently stuck in New York, due to the volcanic cloud from an Icelandic volcano that has grounded many flights into and out of Europe. “There are good means of communication, I have close contacts with my office all the times, and there are a lot of activities in Norway where we try to reduce the consequences of the volcano in Norway,” Stoltenberg told CNN. “It’s very normal for a PM to travel abroad so this is not different from the other travels, it’s just lasts some days more than expected. We have the internet, the mobile phone. I also use an iPad, which is excellent.” [Photo via Flickr]
Some US universities are rejecting the iPad from their campus networks due to connection and security issues. The Wall Street Journal reports that both George Washington University and Princeton University have disallowed usage of the iPad due to security issues. GWU said its wireless network’s security features don’t allow the iPad, iPhone, or iPod touch to connect to its network, while Princeton said it has proactively blocked about 20% of the devices after noticing malfunctions that could cause problems for the entire system. In addition, Cornell University has reportedly seen connectivity issues and is also worried about heavy bandwidth usage. Cornell’s information technology director, Steve Schuster, told the WSJ that the school is “working to ensure the iPad does not have devastating consequences to our network,” adding that when the iPhone arrived on campus it overwhelmed the network’s bandwidth capabilities. Despite these challenges, at least two schools — Seton Hill University in Pennsylvania and George Fox University in Oregon — plan on giving every incoming student either an iPad and a MacBook or a choice between the two when they arrive on the campuses this fall.
US wireless carrier Sprint is now offering a specialized iPad case made to carry both the tablet computer and a wireless hotspot. Available in either a flap-top folio or sleeve design, the 4G Case offers a padded main compartment for the iPad, as well as a dedicated pocket for the Sprint Overdrive 3G/4G Mobile Hotspot, which allows up to five Wi-Fi enabled devices to simultaneously connect to the company’s wireless data networks. Sprint’s 4G Case for the iPad and Overdrive is free for a limited time with an Overdrive purchase at participating Best Buy locations.
Open Door Networks has released the iPad version of its Art Authority application. Expanding upon the iPhone version released in February, Art Authority for the iPad takes advantage of the larger screen and enhanced UI of the iPad to provide an impressive interactive virtual museum experience. Works are displayed within the app framed and hung on textured walls accompanied by titles, dates, and other information. Tapping on a work provides a pop-over for users to access additional details on the selected work or artist or view other related items from the period and artists’ influences. As with the original iPhone version, a customizable full-screen slideshow is also available with images presented in higher resolutions appropriate for the iPad. Works can also be saved to the iPad photo library to be used as home screen or lock screen wallpapers or shared with others. The application provides access to an online database of over 40,000 paintings and sculptures and over 1,000 western artists across all historical periods. Art Authority for the iPad is available from the App Store for $10.
Capcom has announced plans to add a new character to Street Fighter IV for the iPhone and iPod touch. Released March 10th, the iPhone version of Street Fighter IV currently includes 8 popular characters from the Street Fighter franchise: Ryu, Ken, Chun Li, Able, Blanka, M. Bison, Dhalsim, Guile and Ken. A coming free update of the game will add the second female character from the Street Fighter genre, Cammy. Capcom has not yet provided any information on when the update will be available. Additional photos and video can be found on the Street Fighter IV for iPhone Facebook Fan Page.