iLounge

Reporting its first quarter 2013 financial results today, Apple said it sold 47.8 million iPhones in the quarter, a 29 percent increase year-over-year, and up considerably from 26.9 million units in the prior quarter. Apple sold 22.9 million iPads during the quarter, up 49 percent from the year-ago quarter and up 8.9 million units in the fourth quarter of 2012. Finally, the company said it sold 12.7 million iPods during the quarter — an 18 percent decrease compared to the same quarter last year. Unit sales of iPhones, iPads, and iPods bring the cumulative totals for the three device categories to 318.8 million, 120.98 million, and 369.08 million, respectively.

In what the company says was its best quarter ever for both revenues and net profits, Apple posted revenue of $54.45 billion and net quarterly profit of $13.1 billion, or $13.81 per diluted share, compared with revenue of $46.33 billion and net quarterly profit of $13.06 billion, or $13.87 per diluted share in Q1 2012. Revenue from iTunes/Software/Services—previously known as Other Music Related Products and Services—which includes revenue from the iTunes Store, App Store, and iBookstore, was $3.687 billion for the quarter, up 22 percent year-over-year and 5 percent from the prior quarter. It is being separated from revenues from Apple-branded and third-party iPod accessories, which accounted for $1.829 billion in the quarter, up 25% year over year and 46% over the prior quarter. Apple’s Board of Directors also declared a cash dividend of $2.65 per share of the Company’s common stock. The dividend is payable on February 14, 2013, to shareholders of record as of the close of business on February 11, 2013.

“We’re thrilled with record revenue of over $54 billion and sales of over 75 million iOS devices in a single quarter,” said Tim Cook, Apple’s CEO, suggesting that the company sold at least 4.3 million iPod touches in addition to the quarter’s 70.7 million iPads and iPhones. “We’re very confident in our product pipeline as we continue to focus on innovation and making the best products in the world.”

“We’re pleased to have generated over $23 billion in cash flow from operations during the quarter,” said Peter Oppenheimer, Apple’s CFO. “We established new all-time quarterly records for iPhone and iPad sales, significantly broadened our ecosystem, and generated Apple’s highest quarterly revenue ever.

Apple will announce three new iPhone models this year, according to a questionable new report from China and Taiwan. There will be a 4-inch-screened iPhone 5S and a supposedly larger-screened 4.8-inch “iPhone Math” model before the end of June, while a third model with a 12-megapixel camera will arrive before Christmas, the report claims. There have already been rumors of an iPhone 5S, as well as a new low-end iPhone model, but iPhone Math seems almost certain to be a bad translation—and the supposedly larger screen size is equally questionable. This new report also claims Apple will launch iTV before year’s end. While the report should be taken with extra grains of salt, it’s interesting in that it is the first to suggest that Apple may have two separate iPhone release events this year, which could spook some potential early adopters into waiting. [via China Times and Commercial Times (Taiwan), as translated by Brightwire]

An Apple job posting for a Siri Writer/Editor position sheds some light on how Apple may be planning to evolve Siri in the future. Apple seeks a writer with “demonstrated experience in writing character-driven dialog,” and the job description expects a successful candidate to “refresh and refine existing Siri dialog,” “Ensure the consistency and quality of Siri dialog from all sources,” and to “Help the Siri team evolve Siri as a distinct, recognizable character.” Siri, which was taken over by Eddy Cue after Scott Forstall was let go, seems to be moving forward with a strong emphasis on originality, as well as functionality. [via 9to5Mac]

Amazon has announced its MP3 store has been optimized for iPhone and iPod touch. Users can now buy digital music from Amazon’s catalog of more than 22 million songs, directly from Amazon’s store through mobile Safari — the Amazon MP3 mobile website is built on HTML5. Purchases are saved to customers’ Amazon Cloud Player libraries for instant access and playback using the Cloud Player mobile apps. Amazon first launched an iPhone-optimized Kindle Store in 2009; the company has traditionally avoided integrating its store features directly into its iOS apps due to the large amount of content available and to avoid paying a 30 percent cut of sales to Apple.

Sprint will begin allowing iPhone users to sign up for its Total Equipment Protection plan on Jan. 25, according to a new report. Initially not offered for the iPhone, Sprint will now give customers the option of adding TEP up to 30 days from the date of purchase, for a monthly charge of $11. An alternative for Sprint iPhone owners to the hardware protection offered by AppleCare+, the Total Equipment Protection plan allows up to three claims within any consecutive twelve-month period and covers accidental damage as well as loss or theft of the covered device. Deductibles under the TEP plan are based on the price of the device, effectively $150 for the iPhone 4/4S and $200 for the iPhone 5. By comparison, Apple sells its own AppleCare+ coverage for a one-time $99 up front price and allows two claims of accidental damage with a deductible of $50 per claim, with no coverage for loss or theft. The normal out-of-warranty replacement cost for an iPhone 5 is $229. [via Engadget]

Facebook Messenger now offers free calling, as the feature has made its way to US iPhone users. The standalone Facebook app allows users to open a conversation with another Messenger user by opening a conversation, tapping the “i” button, and then tapping the new Free Call button. The calls are free using Wi-Fi or the iPhone’s data connection. The VoIP calling service was announced as a new feature about two weeks ago. An App Store update is not needed to start making calls. [via The Verge]

AT&T has announced it has enabled FaceTime over Cellular at no extra charge for customers using any tiered data plan and a compatible iOS device. Customers with an iPhone 4S and a tiered data plan will now be able to make FaceTime calls on the AT&T network. After initially limiting FaceTime over Cellular to specific shared data plans, AT&T later announced it would allow customers with a tiered data plan and LTE device to use the service. This new announcement removes the LTE device requirement. Now, only users with grandfathered unlimited data plans will be left out. The update should be rolled out “in the next couple of weeks.”

A couple of new iPhone rumors suggest Apple could be looking to release both high-end and low-end models this year, while the iPhone 5 remains in the middle. Analyst Peter Misek has suggested that the iPhone 5S will go through preliminary builds in March, with a launch in June or July, less than a year after the iPhone 5 debuted. Originating from Asian part suppliers, a second report claims that a recently rumored lower-cost iPhone could include a plastic chassis, or a plastic-and-metal chassis designed such that parts might be seen from the outside — a rumored launch date for this model is sometime in the second half of this year. While the rumors should be taken with requisite grains of salt, particularly when they come from analysts, the rumors follow Friday’s withdrawn report regarding Apple Senior VP Phil Schiller’s comments on a cheaper iPhone—a withdrawal that has been taken to suggest that the company is indeed pursuing a new affordable model. iLounge’s own sources suggest that Apple hopes to release a less expensive version of the iPhone 5, featuring such components as a Lightning connector and 4” screen.
[via Street Insider, Digitimes]

Apple has reportedly decreased orders for LCD screens and other iPhone 5 parts due to “weak demand.” The company has asked Japan Display Inc., Sharp, and LG Display Co. to cut their LCD panel shipments by about 50 percent, according to sources — down from 65 million screens in the first quarter, leading observers to believe sales aren’t as high as Apple expected. Other component orders were also decreased. Apple has not yet commented on the reports, which have apparently contributed to declines in its stock this morning. [via San Jose Mercury News]

Walmart has drawn fire from rivals for misleading ads, with Best Buy specifically claiming that it lost $65,000 in profit in one day on the iPhone 5. According to a report, Walmart sold the iPhone 5 for $150 on the first day of its promotion, but advertised the device for $127; iLounge noted that the company had misleadingly offered and then didn’t honor an aggressive discount on the current-generation iPad, as well. Complaints against Walmart have reportedly been filed with state attorneys general as a result of the pricing practices.

Best Buy claims that Walmart didn’t have a sufficient number of iPhones available to meet its promised pricing, and Best Buy’s price-match guarantee required the chain to match Walmart’s advertised price. Walmart says that the iPhone 5 was 98 percent in stock at stores that carried the phone, but didn’t release exact figures on how many phones were in stock. [via The Wall Street Journal]

Developers have seen references to the next-generation iPhone and iOS 7 in app usage logs, according to a new report. One particular developer noted Apple has been testing hardware identified as “iPhone 6.1,” powered by a device running iOS 7. The iPhone 5 is identified as either “iPhone 5.1” or “iPhone 5.2,” depending on the model and 4G band. Because the developer app requests come from an Apple Cupertino IP address, it’s unlikely this new data is faked, and highly possible that apps running on the new device and operating system are already being tested. [via The Next Web]

No-contract MVNO Solavei is offering existing unlocked GSM iPhone users an unlimited talk, text, and data plan for $49 a month, leveraging T-Mobile’s 4G network. Users will be able to access 4G coverage across 37 markets nationwide, including 14 newly expanded markets: New York City, Newark, Boston, Philadelphia, Providence, Detroit, Dallas, Fort Worth, Austin, San Antonio, Tampa, Warren, Mich., and Springfield, Mass.

An anecdotal report suggests iOS 6.0.2 for the iPhone 5 and iPad mini appears to be affecting battery life. The update, which aimed to fix a Wi-Fi bug, is allegedly causing unusually fast battery drain on the updated devices for some users. As with prior iOS-related battery issues, the problem does not appear to affect all users; however, a Twitter search for “iOS 6.0.2 battery” reveals a fair number of tweets about decreased battery life related to the update. It’s been noted that Apple has removed the support note for the update, which may signal another patch to address the latest problem. [via Tidbits, ZDNet]

Apple was awarded a design patent for its original iPhone on Tuesday. The patent is described simply as “The ornamental design of an electronic device, as shown and described.” Steve Jobs and Jony Ive are among those credited as inventors. As previously noted, Apple was also granted a key multi touch patent and a patent for reducing the size of system-on-chip architectures in its devices.

Brazilian electronics makers IGB Eletronica SA announced it will sell smartphones in Brazil under the brand name “IPHONE,” to which it has exclusive local rights. The company registered the name in 2000, and secured rights to the name in 2008. The first smartphone from the company will be called “Neo One.”

It remains to be seen how Apple will address the issue, but this isn’t new territory for the company: a recent Mexican court ruling allows Apple to use the “iPhone” name in Mexico, despite a Mexican company iFone’s ability to use its name for its own products. In 2009, Apple settled a trademark dispute over the iPad name in China, paying Proview $60 million for the naming rights. [via Reuters]

Apple has released an iOS 6.0.2 software update, which currently appears to be available only for the iPhone 5 and iPad mini.

The release notes say that the update “fixes a bug that could impact Wi-Fi.” As of now, iOS 6.0.2 is not showing up as an update for the latest full-sized iPad or iPod touch.

Apple has seeded developers with iOS 6.1 beta 4. The update is available to registered iOS developers as an over-the-air software update, for those with iOS 6.1 beta already installed. It is unclear what changes may be contained in the release. A new Apple TV beta and a new preview of Xcode 4.6 have also been seeded to developers. [via 9to5Mac]

In an extremely rare foreign country-specific press release, Apple announced sales of more than two million iPhone 5s in China during its first launch weekend. The phone was officially launched in the Chinese mainland on Dec. 14, having been available for sale in Hong Kong since September. “Customer response to iPhone 5 in China has been incredible, setting a new record with the best first weekend sales ever in China,” Apple CEO Tim Cook said in a statement. “China is a very important market for us and customers there cannot wait to get their hands on Apple products.” iPhone 5 will be available in more than 100 countries by the end of the year; speculation regarding weak or slow mainland Chinese sales may have spurred the company to disclose early figures.

Walmart has announced that it will be dropping the price of the 16GB fourth-generation* Wi-Fi iPad to $399, and offering a 16GB iPhone 5 for $127, effective today, substantial price cuts that are surprising at this early stage of both products’ availability. Additionally, the fourth-generation* iPad will also come with a $30 iTunes gift card starting on Monday. The 16GB iPhone 4S has also seen its price cut today to $47 — both iPhone price cuts are valid with the typical two-year contract. These discounted prices are only available in retail stores, and not available online.

Updated: Although iLounge contacted Walmart before posting this story to confirm that the $399 pricing did, in fact, apply to the fourth-generation iPad - and received unambiguous written confirmation of that detail from a spokesperson - the company has now retracted the claim, suggesting that the $399 price applies solely to the third-generation iPad.

From Walmart’s spokesperson: “The iPad model on sale is the fourth-generation iPad currently in stores (not the iPad 3). Rollback prices on the iPhone and iPad are effective today, not Monday, with the $30 iTunes card added in beginning Monday, Dec. 17.” iLounge recommends that disgruntled customers contact Walmart directly to see if they can get the advertised price offered.

A new Apple patent published today reveals a new way for a phone to handle incoming calls. Titled “Dynamic context-based auto-response generation,” the patent is a step forward from the call waiting features of iOS6, offering the possibility of answering calls with a pre-recorded message based on caller ID or other attributes.

Another scenario also allows users to manually select an option to answer the call, send it to voice mail, or place it on hold, and the user can enter an estimated hold time for the call, which can be announced to the caller. The patent also describes a method for converting voice mail messages to text. [via Apple Insider]