MacRumors

Apple shipped a record-breaking 5.2 million Apple Watch units last quarter, making it by far the most popular smartwatch of the holiday shopping season, according to the latest data from research firm Strategy Analytics. Apple captured an estimated 63.4% of the worldwide smartwatch market during the quarter.

Apple's closest competitor Samsung shipped only 800,000 smartwatches in the quarter, for an estimated 9.8% market share, according to Strategy Analytics. All other smartwatch vendors, such as Garmin, Fitbit, and Huawei, combined for an estimated 2.2 million shipments and 26.8% market share.

"Demand for Apple's new Watch Series 2 as a holiday-season gift in Western markets was surprisingly strong and it enabled Apple to clear a large backlog of smartwatch inventory during the quarter," said Strategy Analytics director Cliff Raskind.

It is important to acknowledge that these are estimated figures, and that shipments do not necessarily reflect sales.

Apple does not break out Apple Watch sales like it does with iPhones, iPads, and Macs, and instead groups the device under its "Other Products" category. Given the category also includes the Apple TV, Beats products, iPods, AirPods, and other accessories, figuring out Apple Watch revenue is deliberately challenging.

Apple only elected to share that the Apple Watch set all time sales records during the first quarter of its 2017 fiscal year, with CEO Tim Cook noting holiday demand was "so strong" that Apple "couldn't make enough."

Strategy Analytics will not disclose its exact methodology for competitive reasons, but executive director Neil Mawston told us the company uses "a blend of channel checks, financial analysis, and other sources" to estimate Apple Watch shipments. "It is the same methodology we have used for phones since the 1990s and for wearables since the modern market first emerged circa 2013."

Apple saw its "Other Products" revenue drop 8% to $4.02 billion in the quarter compared to $4.35 billion in the year-ago quarter, a sizeable decline that Apple financial chief Luca Maestri attributed to declining Apple TV sales.

Strategy Analytics said the smartwatch industry is showing "tentative signs of recovery" this year, but Raskind noted there remain "several barriers to growth" that must be addressed.

Smartwatch vendors like Samsung need to launch more exciting or cheaper models, Apple must engage closer with mobile operators to stock or subsidize its popular Watch portfolio, while component makers need to develop more accurate sensors for health and fitness tracking that consumers will trust and use more.

Apple Watch shipments totaled 11.6 million units in 2016, or slightly more than half of the estimated 21.1 million smartwatches shipped by all vendors in the year, according to Strategy Analytics. The firm's data shows a slightly lower 20.8 million smartwatches were shipped globally in 2015 for comparison.

Apple is developing a new ARM-based chip for its Mac lineup that would "take on more of the functionality" handled by Intel processors, reports Bloomberg.

In development since last year, the chip, codenamed T310, is said to be similar to the chip used to power the Touch Bar in the new 2016 Macbook Pro. It's built using ARM technology and will work with the standard Intel processor, handling "Power Nap" low-power mode functionality.

Apple engineers are planning to offload the Mac's low-power mode, a feature marketed as "Power Nap," to the next-generation ARM-based chip. This function allows Mac laptops to retrieve e-mails, install software updates, and synchronize calendar appointments with the display shut and not in use. The feature currently uses little battery life while run on the Intel chip, but the move to ARM would conserve even more power, according to one of the people.

Apple's 2016 MacBook Pro uses an independent ARM-based chip called the T1 to power the Touch Bar, the Touch ID fingerprint sensor built into the Touch Bar, and the secure enclave that stores payment and biometric data.

According to Bloomberg's report, the upcoming ARM-based chip will "go further," connecting to storage and wireless components to take on additional power management capabilities.

Apple could begin using the new chip in an upgraded version of the MacBook Pro set to launch later this year, but it could be introduced as a quiet update with little fanfare as the chip that powers the Touch Bar was not promoted by Apple.

Despite Apple's plans to offload some tasks to a new ARM chip, Apple is said to have no intention of abandoning Intel chips in its laptop and desktop computers.

Apple today quietly put out a firmware update for the AirPods, bumping the Bluetooth headphones from version 3.3.1 to 3.5.1, as spotted by a user on Reddit. The update to AirPods is automatic for any AirPods in their Charging Case and connected to a nearby iOS device. After making sure the AirPods are connected, users can check their current firmware version by going to the Settings app on iPhone > General > About > AirPods.

It's not clear what the 3.5.1 update covers due to its silent release and a lack of specific patch notes, but the AirPods have faced a number of complaints over the past few weeks that the new firmware version could potentially be addressing. Mainly, there have been a number of user complaints regarding battery drain issues with the AirPods and the Charging Case, as well as dropped Bluetooth connections when on phone calls on iPhone 6s and iPhone 6s Plus devices.

AirPods launched in December to largely positive reviews from users praising their ease of connectivity with iOS devices, thanks to the W1 chip, as well as their sound quality. Since the launch, the AirPods have been hard to come by both online and in Apple retail stores, with current shipping estimates on Apple.com sitting at the six week mark, arriving mid-March if users order today.

Apple overtook Samsung to become the world's largest smartphone vendor in the fourth quarter of 2016 as shipments reached 439 million units.

According to independent research firm Strategy Analytics, global smartphone shipments grew 3 percent annually to hit a record 1.5 billion units in 2016. Apple shipped 78.3 million handsets in the fourth quarter of the year – around 800,000 more units than Samsung – allowing it to recapture its number one position with 18 percent global smartphone market share.

Apple shipped 78.3 million smartphones worldwide and captured 18 percent marketshare in Q4 2016, rising a steady 5 percent annually from 74.8 million units in Q4 2015. This was the iPhone's best performance for over a year, as Apple capitalized on Samsung's recent missteps. Samsung shipped 77.5 million smartphones worldwide in Q4 2016, dipping 5 percent annually from 81.3 million units in Q4 2015.

Bolstered by the popularity of the iPhone 7 and particularly the iPhone 7 Plus, Apple's 5 percent increase in shipments year-over-year helped it secure a 17.8 percent share of the global smartphone market, narrowly beating Samsung's share of 17.7 percent, which was negatively impacted by the company's Note7 battery fiasco. Samsung captured 21 percent share for the full year, marking its lowest level since 2011.

Despite the Q4 results, Samsung maintained first position in annualized figures, with 309 million units shipped worldwide in 2016, compared to Apple's 215 million units. Despite struggling in China against rivals like OPPO, Huawei's impressive overseas performance helped it maintain third position, with a record 10 percent global smartphone market share in Q4 2016 – the first time the company has reached double figures – while OPPO held on to fourth position and grew 99 percent annually to capture a record 7 percent global smartphone market share.

The research comes one day after Apple released its Q1 2017 financial results, in which it reported record results over what corresponds to the fourth calendar quarter of 2016. Cook was bullish on the iPhone's future, and talked up the smartphone's importance across a range of segments, including home automation, health, CarPlay, and enterprise. "I think the smartphone is still in the early innings of the game," Cook said during the earnings call. "App developers are still inventing and there are some exciting things in the pipeline that I feel really good about."

According to Apple CEO Tim Cook, the 5.5-inch iPhone 7 Plus, released in September of 2016 alongside the smaller 4.7-inch iPhone 7, is the most popular "Plus" model Apple has released, outselling the 2014 iPhone 6 Plus and the 2015 iPhone 6s Plus.

Apple's Plus lineup has always had differentiating factors compared to the smaller iPhones Apple offers, but in the iPhone 7 Plus, the dual camera appears to have been particularly popular with customers. The iPhone 7 Plus features both a standard wide-angle lens and a 56mm telephoto lens, which can be used to improve photos.

It also features a "Portrait" mode that's used with the 56mm lens to create high-quality DSLR-style images with blurred backgrounds to highlight subjects, a unique function that may have drawn more interest.

Customers may also be getting used to the larger form factor in general. In 2014, with the switch to the 4.7 and 5.5-inch sizes, going from the 4-inch iPhone 5 line to the 5.5-inch size was a huge jump, but with two years to adjust to the new display sizes, it's not such a leap.

Cook said that Apple had underestimated demand for the iPhone 7 Plus, leading to supply and demand issues with the device that impacted sales. Despite that, Apple saw record iPhone sales during the quarter, selling a total of 78.3 million iPhones.

During today's earnings call covering the first fiscal quarter of 2017, Apple CEO Tim Cook was asked about Apple's next moves when it comes to the television, such as original programming, where the company has been experimenting with content for its Apple Music service.

Cook didn't have too much to say on the subject, but he said Apple has a "toe in the water" and will see how things play out going forward. Cook believes the media industry will continue to evolve as the cable model breaks down, perhaps leading to new opportunities.

In terms of original content, we've put our toe in the water doing some original content for Apple Music, and that will be rolling out throughout the year. We're learning from that and we'll go from there.

He went on to say that the Apple TV has gone a long way in the year that it's been available for purchase, and has provided Apple with a "clear platform" to "build off of." Earlier in the call, he said Apple now has 150 million paid subscriptions for first and third-party services, and that's an area where Apple "participates economically" by providing the platform.

Apple is working on several shows that will be used to promote Apple Music, including Carpool Karaoke, a reality television series based on James Corden's Carpool Karoke bit during the "Late Late Show," and "Vital Signs," a drama that will star Dr. Dre. Neither show has an air date as of yet, but as Cook says, they're coming soon.

Cook ended the question by saying "With our toe in the water, we're learning a lot about the original content business and thinking of ways we could play in that."

Apple today announced financial results for the first fiscal quarter of 2017, which corresponds to the fourth calendar quarter of 2016. For the quarter, Apple posted revenue of $78.4 billion and net quarterly profit of $17.9 billion, or $3.36 per diluted share, compared to revenue of $75.9 billion and net quarterly profit of $18.4 billion, or $3.28 per diluted share, in the year-ago quarter. Both revenue and earnings per share were company records in what is traditionally Apple's strongest quarter due to the launch of new iPhone models.

Gross margin for the quarter was 38.5 percent compared to 40.1 percent in the year-ago quarter, with international sales accounting for 64 percent of revenue. Apple also declared an upcoming dividend payment of $0.57 per share, payable on February 16 to shareholders of record as of February 13.

Apple sold a record 78.3 million iPhones during the quarter, up slightly from 74.8 million a year earlier, while Mac sales rose slightly to 5.4 million units from 5.3 million units in the year-ago quarter. iPad sales continued their recent declines, falling to 13.1 million from 16.1 million.

“We’re thrilled to report that our holiday quarter results generated Apple’s highest quarterly revenue ever, and broke multiple records along the way. We sold more iPhones than ever before and set all-time revenue records for iPhone, Services, Mac and Apple Watch,” said Tim Cook, Apple’s CEO. “Revenue from Services grew strongly over last year, led by record customer activity on the App Store, and we are very excited about the products in our pipeline.”

Apple's guidance for the second quarter of fiscal 2017 includes expected revenue of $51.5–53.5 billion and gross margin between 38 and 39 percent. Revenue guidance is slightly below analyst expectations.

Apple will provide live streaming of its fiscal Q1 2017 financial results conference call at 2:00 PM Pacific, and MacRumors will update this story with coverage of the conference call highlights.

Conference Call and Q&A Highlights are available in reverse chronological order after the jump.

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Actor Justin Long, well known for his role in Apple's popular "Get a Mac" ad campaign, has signed on to star in a series of Huawei commercials promoting the company's latest Mate 9 smartphone.

Huawei reportedly sought out Long due to his past work with Apple, despite the fact that Long hasn't been in an Apple ad since 2009. "It was key when we considered Justin as a possible partner for Huawei," Jessica Grizzel, director of the WPP Blast Radius agency behind the campaign told ad industry news site Campaign U.S. in an interview.

From 2006 to 2009, Justin Long played a Mac computer in Apple's "Get a Mac" campaign, starring in commercials alongside John Hodgman, who played a PC. The commercials always started out with the tagline "Hello, I'm a Mac," and were some of Apple's most iconic ads, featuring Long as the cool, casual Mac while Hodgman was a stuffy PC in a suit and tie.

Huawei is China's largest smartphone maker and the third largest smartphone manufacturer in the world, but the company has bigger ambitions.

Huawei consumer head Richard Yu recently said the company's goal is to break into the top two market share, and, by 2021, become the top smartphone seller in the world. Given its ambitions, it is not surprising Huawei is attempting to take some advertising cues from Apple.

The ad agency behind the campaign even wanted to highlight Long's past relationship with Apple in its new line of ads, but Long reportedly convinced the company to go with a more subtle approach.

In fact, Grizzel says the original concept "was a much more emboldened approach to call out the previous relationship with Apple," but that Long and the client encouraged them to find "a nice middle ground where that idea is inferred as opposed to explicitly stated." [...]

"The storyline for the video series positions Justin as a new director providing guidance to a series of Huawei products as they are looking to break into the market and make their mark," she said. "There is no doubt that Justin's history as a pitch-man for Apple adds a nice subtext to the videos and builds on Huawei's challenger position in the market."

Long's first spot, "The Interview," features Long interviewing with a Mate 9 for the opportunity to direct Huawei commercials. The ad is fairly different from Apple's "Get a Mac" campaign, but it does feature the same light humor used to highlight Mate 9 features.

To secure a position as the top smartphone manufacturer in the world, Huawei will need to make serious inroads into the U.S. market, something the company may be hoping Long will help with. Huawei has not managed to establish deals with the major carriers in the United States and it has a ways to go to impact Apple, the U.S.'s top smartphone manufacturer.