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Notes from Apple’s Q3 2010 Conference Call

During Apple’s Third Quarter 2010 Financial Results Conference Call, Apple CFO Peter Oppenheimer and Apple COO Tim Cook made several noteworthy comments concerning the company’s digital media products, including the iPod, iPhone, and iPad. In his opening statements, Oppenheimer said the company has sold its 100 millionth iOS device—a long-awaited milestone—that the iPod continues to gain market share year-over-year in nearly every tracked country, and that iTunes revenue was up 25% from the year-ago quarter. Apple saw strong sales of the iPhone in Asia, Europe, and Japan, and is now available from 154 carriers in 88 countries. In regards to the company’s offer of free cases for all iPhone 4 purchasers, Oppenheimer said the company would defer an estimated $175 million in revenue until the December quarter, corresponding to the estimated total value of the case giveaway.

The executives revealed that the average selling price (ASP) of the iPad for the quarter was $640, while the iPhone saw an ASP of $590, the latter reflecting both direct payments by customers and shared revenue from carrier partners. In terms of corporate use, more than 80% of the Fortune 100 and over 60% of the Fortune 500 are now deploying or pilot testing the iPhone, while around 400 higher education institutions have embraced the iPhone for faculty, staff, and students. The executives also said that after just 90 days, 50% of the Fortune 100 are deploying or testing the iPad, a stunning number considering the opposition Apple once faced trying to sell Macs to these companies. In discussing iPhone sales numbers and the lead up to the launch of the iPhone 4, Cook revealed that the company saw significantly lower sales from June 7—the date the iPhone 4 was unveiled—through June 24, the device’s official launch, which came only days before the end of the quarter. The year-over-year growth rate for the iPhone was close to 90% heading in to June 7, but finished at 61% as a result of the slowdown, a reflection of how changes in both Apple’s iPhone inventory and consumer demand can impact its sales numbers immediately before a new model is launched.

Throughout the call, Cook repeatedly explained that Apple is making both iPads and iPhone 4 units as fast as it can sell them, and while it is working to ramp up production and meet demand as quickly as possible, it can’t say definitively when it will have enough supply to meet demand. This was characterized as a good problem to have, and iPad sales were noted to be as strong during the three-month quarter as some had expected in an entire year. The executives also said that the company had seen an extremely small number of iPhone 4 returns over the antenna issue. Notably, the Apple TV was not discussed at any point throughout the course of the call.

Apple sells 9.4m iPods, 8.4m iPhones, 3.27m iPads in Q3 2010

Reporting its third quarter 2010 financial results today, Apple said it sold 9.41 million iPods during the quarter—an eight percent unit decrease compared to the 10.2 million iPods sold in Q3 2009, albeit with a four percent increase in revenue. It also sold 8.4 million iPhones in the quarter, up 61% from the year-ago quarter, and 3.27 million iPads, the latter alone contributing $2.166 billion in revenue during its first quarter of supply-constrained availability. The company posted overall revenue of $15.7 billion and a net quarterly profit of $3.25 billion, or $3.51 per diluted share, compared with revenue of $9.73 billion and net quarterly profit of $1.83 billion, or $2.01 per diluted share in Q3 2009.

“It was a phenomenal quarter that exceeded our expectations all around, including the most successful product launch in Apple’s history with iPhone 4,” said Steve Jobs, Apple’s CEO. “iPad is off to a terrific start, more people are buying Macs than ever before, and we have amazing new products still to come this year.”

“We’re really pleased to have generated over $4 billion of cash during the quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the fourth fiscal quarter of 2010, we expect revenue of about $18 billion and we expect diluted earnings per share of about $3.44”

iLounge launches iPhone 4 Case Gallery

Following the earlier launch this year of our iPad Accessory Gallery, iLounge today announces the arrival of the new iPhone 4 Case Gallery. The new gallery currently contains 30 different iPhone 4 cases—many in additional colors—with more cases arriving every day or so. Between its delicate glass body and external antenna design, there’s little doubt that the iPhone 4 is begging for a case, so visit the Case Gallery today to find an option that’s right for you!

Apple conducting online iPhone 4 survey

Apple has started to send out an iPhone 4 satisfaction survey to select customers. Boy Genius Report has published screenshots of the survey online, which includes questions asking the users’ ages, overall satisfaction and satisfaction with certain individual features, whether they would recommend the phone, whether it’s the first iPhone they’ve owned, what brand of mobile phone it replaced, whether they use Windows or Mac, and whether they use their phones for personal or work-related reasons.

Mix: AAPL, Privacy, IDC, White iPhone 4

Apple will announce its third quarter 2010 earnings later today. As it has done in the past, the company also plans to conduct a conference call to discuss its third fiscal quarter results; the call will begin at 2:00 p.m. PST and will be available as an audio webcast.

Apple has responded to an inquiry from the House of Representatives into its location data collection techniques. According to Cnet, the 13-page letter explains that Apple previously shared information with Google and Skyhook, but now keeps its database of call tower locations, Wi-Fi access points, and anonymous GPS coordinates to itself. It does not collect any personally identifying data, such as SSIDs or data.

According to the latest data from IDC, 66% of current iPhone owners will delay their purchase of the iPhone 4 because of the handset’s well-documented antenna and reception issues. Macworld UK reports that despite the low numbers among current owners, 74% of those who don’t own an iPhone and plan to purchase one said the ongoing issues would not delay their plans. ““It looks like a perfect example of the difference between behavioral economics and market economics,” said Will Stofega, a mobile device analyst for IDC. “The iPhone 4 clearly isn’t working as it should, Apple’s saying that ‘We’ll give you a Bumper,’ but people seem committed to the iPhone. Many of them see this as overblown, and that Apple will fix it.”

Apple’s need to initially delay shipments of white iPhone 4 units was due to problems at Lens Technology, a small Chinese company responsible for transforming fine raw glass into the final iPhone glass panel. Engadget reports that the company’s factory is still working on the right combination of paint thickness and opacity to allow for attachment of the digitizer while keeping the panel the correct color of white. The report goes on to state that Lens can currently only match half of Apple’s demand, posing a bottleneck to the supply chain.

FileMaker Go for iPhone, iPad now available

Apple subsidiary FileMaker has released its new FileMaker Go apps for the iPhone/iPod touch and iPad. FileMaker Go allows users to access FileMaker Pro databases over a local network or remotely via Wi-Fi or 3G. Users can add, modify, or delete data, find, sort, and navigate records, open windows, and switch layouts, and FileMaker GO offers support for tab controls, Quick Find, web viewers, external SQL data sources, containers, portals and many scripts. FileMaker Go for iPhone and iPod touch is $20 and requires iOS 4, while FileMaker Go for iPad sells for $40.

iBooks 1.1.1 adds audio, video support, PDF improvements

Apple has released iBooks 1.1.1, the latest version of its e-book reading application for the iPod touch, iPhone, and iPad. According to Apple, the new version includes the ability to double-tap images to view more detail, support for audio and video within books, performance improvements for PDF reading, fixes for an issue that caused some book downloads not to complete, and other stability and performance improvements. iBooks 1.1.1 is available now from the App Store.

Apple releases iTunes version 9.2.1

Apple has released iTunes version 9.2.1, the latest update to its media management software. According to Apple’s release notes, iTunes version 9.2.1 disables older versions of certain incompatible third-party plug-ins, addresses issues concerning drag-and-drop, performance when first syncing some devices, upgrading to iOS 4 on an iPhone or iPod touch with encrypted back-ups, and “other issues” impacting stability and performance. iTunes 9.2.1 is available now via Apple’s Software Update utility or as a direct download from

Accessory makers take advantage of free Bumper offer

A number of accessory makers have launched new offers aimed at taking advantage of Apple’s recent announcement of a free iPhone 4 case offer. Both Incipio and Proporta are offering Bumper trade-in programs, with Incipio promising $5 off any Incipio product for each Bumper sent to the company—a limit of two per household applies—and Proporta offering 20% off any Proporta case or screen protector for the iPhone 4 with each Bumper returned using the promo code “CASEFREE,” with no apparent limit in place. Fusion of Ideas is instead offering iPhone 4 users free side pieces of its StealthArmor protective film, with a shipping charge of $1.50, and the option to upgrade to a full-body kit at a $10 discount off regular price.

iHome debuts alarm clock, charging station for iPad

iHome has debuted a new alarm clock and charging station for the iPad, iPhone, and iPod. The iA100ZE is a modified version of the iA100 that was an iLounge 2010 Best of Show winner at this year’s CES, the iA100ZE is an app-optimized alarm clock offering an integrated Dock, Bongiovi audio technology, custom alarm and nap settings, the ability to sync the clock to that of the connected iPhone, iPad, or iPod, an FM radio with 10 presets, Bluetooth audio and speakerphone technology, programmable snooze time, and gradual wake/sleep functions. The iB969 is a charging station for the iPad, iPod, iPhone, and other USB-charging devices. It features a built-in iPad stand, two integrated iPod/iPhone docks—one offering sync capability and one offering quick charging—and a USB port for charging either the iPad or some other USB-charging device. Prices and release dates have yet to be announced for either product.

Quirky, SwitchEasy intro new cases for iPhone 4

Quirky and SwitchEasy have each launched new cases for the iPhone 4. Quirky has introduced the Tilt, an angular bumper-style case featuring a plastic body, rubber front face, a unique bottom portion that flips back to serve as a stand, and open access to all ports and controls. It is now available now for pre-order and sells for $28. SwitchEasy has introduced its Colors case for the iPhone 4. Like previous Colors cases for the iPhone 3G and 3GS, Colors for the iPhone 4 is a silicone case offering push-though coverage for the volume and sleep/wake buttons, a unique “jelly bean” tactile home button, open access to all other ports, controls, and the camera, two included anti-static screen guards, a microfiber cleaning cloth, two Dock connector protectors, two headphone port connectors, and a squeegee for screen guard application. Colors is available in a variety of hues and sells for $15; for more information, see our First Look article.

Apple pulls Bumpers from retail, online Stores

Apple has pulled its remaining stock of iPhone 4 Bumper cases from its retail and online Stores ahead of its free giveaway. A check with an Ohio-based retail store, as well as with Apple’s online store, shows no availability of the Apple-branded cases, and a retail store representative confirmed with iLounge that the cases had been pulled due to the giveaway. Apple announced on Friday that it would be offering a free Bumper or other, yet-to-be-determined case to all current iPhone 4 users and those who purchase the handset by September 30 due to complaints over the iPhone 4’s antenna issues.

iPad to launch in nine more countries July 23

Apple has announced that the iPad will launch in Austria, Belgium, Hong Kong, Ireland, Luxembourg, Mexico, Netherlands, New Zealand and Singapore this Friday, July 23. Both iPad with Wi-Fi and iPad with Wi-Fi + 3G models will be available at yet to be determined prices. The iPad is currently available in Australia, Canada, France, Germany, Italy, Japan, Spain, Switzerland, the UK and the US, and Apple claims it will roll out the device to “many more countries” later this year.

Enter the V-Moda Crossfade LP Giveaway today

Don’t forget to get your entry in for our V-Moda Crossfade LP Giveaway. In our Giveaway of the Month for July, iLounge and V-Moda are giving away five Crossfade LP Headphones. In addition, V-Moda is offering the first 100 people who use coupon code “iLounge” on a free set of Remix Remote earphones with the purchase of Crossfade LP Headphones. To enter, simply fill out and submit the form on the giveaway page—the giveaway will end on July 31, 2010 at 11:59PM Pacific Time. Good luck!

Apple posts video of iPhone 4 event, antenna info pages

Apple has posted a QuickTime video stream of its iPhone 4 press conference on its website. During the roughly hour-long event, Apple CEO Steve Jobs gave a presentation explaining Apple’s view of the antenna issues, and promised free cases to all current iPhone 4 users and all those who will purchase the device by September 30. Notably missing from the video stream is the question and answer session held directly following the presentation, a brief overview of which can be found here. In addition, the company has posted a pair of new webpages examining smartphone antenna performance and comparing that of the iPhone 4 to the BlackBerry Bold, HTC Droid Eris, Samsung Omnia II, and iPhone 3GS, and highlighting the company’s antenna design and testing labs.

iOS 4.1 poll ends, iPhone 4 response poll begins

With over 2,300 votes from iLounge readers, our latest poll—“What feature do you most want to see in iOS 4.1?”—has ended. Readers could choose from improvements including iPad support, expanded multitasking and background processes, iTunes Library streaming support, wireless syncing, iPhone/iPod support for the iPad Camera Kit, iPad-to-iPhone tethering, fixes for iPhone 4 reception, proximity sensor bugs, or other improvements.

Over one quarter of readers—27%—said they’d like to see fixes for iPhone 4 reception and proximity sensor bugs in iOS 4.1. The latter has been confirmed for a future software update, although not necessarily iOS 4.1, while the former has been addressed by Apple in the form of free cases for unhappy iPhone 4 users. 25% of readers said they’d most like to see wireless syncing, followed by 20% who would like iPad support—a large question mark given the lack of an iPad-compatible beta—9% who would like iPad-to-iPhone tethering, and 7% each who want iTunes Library streaming support or expanded multitasking and background processes. 5% of readers said they most want to see some other feature addition or improvement, while only 1% said they’d most like to see iPhone and iPod support for the iPad Camera Kit. Thanks for all your votes!

Our new poll focuses on Apple’s response to the iPhone 4’s reception problems. We’d like to know whether you’re satisfied with the explanation of the problem and the offering of free cases. Are you thrilled, mildly satisfied, unsatisfied, or upset by Apple’s response, or do you not have an opinion? Our new poll, “Did Apple properly address iPhone 4 reception concerns?” lets you share your thoughts. You can find the iLounge Poll in the left hand column of the main home page. Cast your vote today!

iPhone 4 proximity sensor fix coming in next update

Among other revelations from its iPhone 4 press conference, Apple claimed that a fix for the iPhone 4’s proximity sensor issue would be included in the next update. The issue, in which calls can be accidentally interrupted by button presses and hang-ups, has been reported since the launch of the device, and eventually lead to a grass roots campaign to gain press coverage, as the majority of negative iPhone 4 reports had focused on the antenna issue. Apple did not specify when the update would arrive, or whether it would be a small, incremental update—like iOS 4.0.1—or included in the larger iOS 4.1 update, a beta of which was released to paid developers earlier this week.

iPhone 4 to launch in 17 countries July 30, white model soon

Apple today revealed that it will launch the iPhone 4 in Australia, Austria, Belgium, Canada, Denmark, Finland, Hong Kong, Ireland, Italy, Luxembourg, Netherlands, Norway, New Zealand, Singapore, Spain, Sweden, and Switzerland on July 30. Notably, the list of countries does not include South Korea, which was previously scheduled to receive the phone at the same time; no reason was given for the delay. In addition, Apple said that white models of the iPhone 4 will be available in late July, but did not offer an exact date for availability, or reveal whether online pre-orders would be available.

Apple to offer free cases to iPhone 4 users

During today’s iPhone 4 press conference, Apple CEO Steve Jobs revealed that due to complaints over the iPhone 4’s antenna issue, Apple will be offering a free case to all customers who purchase an iPhone 4 by September 30. According to Jobs, users will be able to apply for the free case on Apple’s website late next week, and the case will be shipped to them free of charge. Due to the low number of Bumper cases available, Apple also said it will be offering users a choice of cases beyond the Bumpers, but did not specify which cases would be eligible. For iPhone 4 users who have already purchased a Bumper case, Apple will be offering refunds, but will not be refunding those who purchased third-party cases.

Apple’s iPhone 4 press conference starts at 10 a.m.

Apple’s short-notice press conference regarding the iPhone 4 will begin at 10:00 a.m. Pacific Time. Although no one is certain what the company may say, earlier reports have indicated that the company is unlikely to issue a recall of current iPhone 4 units, and may well claim that the handset’s reception problems can be fixed via a software update. Also unknown is whether or not the company will make any mention of the ongoing proximity sensor issue reported by some users. We will be updating this story throughout the event as information becomes available.

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