MacRumors

Apple's share of profits raked in by the world's top publicly-traded mobile phone vendors rose once again this quarter, as asymco's Horace Dediu notes in the latest edition of his quarterly tracking reports. According to Dediu's calculations, Apple's share of profits among the eight companies tracked rose to 66%, up from 57% last quarter.

This quarter saw a slight sequential decline in overall profit for the sector, but four vendors did not manage a profit from selling phones. Nokia, Motorola, Sony-Ericsson and LG all saw losses. The other vendors split the slightly decreased pie with Apple getting two thirds of it (66.3%)

This share is up from 57% in Q1 and 50% in Q3 and Q4. Samsung’s share went to 15%, though that’s not a peak level historically. In Q1 2008 the company was at 21%. RIM was at 11%, a level in a range that has been unchanged for three years. Finally, HTC captured 7.4%, a new high and an increase from 6% since last quarter.

Dediu notes that smartphones have become the primary driver of mobile phone vendor profitability, giving Apple a significant edge over most of the competition with its smartphone-only offerings.

Apple first grabbed the profit share lead from Nokia way back in the fourth quarter of 2008, and hit the 50% mark a year ago in the third quarter of 2010. Apple of course only holds about 5.6% unit share in the total mobile phone market, but earns much more profit on its premium-priced iPhones than other vendors do with their offerings.

Yesterday, we noted that Logitech had slashed the price of its Google TV-powered Revue set-top box to below cost following a quarter in which customer returns actually exceeded new sales. We reported that development within the context of Apple's measured steps into the television market that have seen the Apple TV primarily function as a media hub for iTunes Store content and a handful of streaming services.

Apple does indeed appear to be having some moderate success with the Apple TV, as industry checks by Concord Securities analyst Ming-Chi Kuo reveal that Apple shipped approximately 480,000 Apple TV units during the second quarter, as reported to AppleInsider. The performance represents more than 70% year-over-year growth as Apple transitioned from the larger hard-drive based first-generation Apple TV to the iOS-powered second-generation streaming device.

Kuo's industry sources claim, however, that Apple is not planning a hardware update for the Apple TV during the current quarter, putting a damper on the excitement of those hoping that changes in iOS 5 would open the door to a true 1080p Apple TV. Instead, Apple is said to be relying on iOS enhancements to boost the AirPlay capabilities of the Apple TV to better support Apple's latest iOS devices.

Apple's new computers shipping with Lion do not include physical restore media and instead utilize a hidden recovery partition to allow users to reinstall their system software should the need arise. But as noted by Macworld, reinstallation of the iLife '11 software included on new Macs occurs via the Mac App Store, which recognizes the machines' iLife licenses and links them to users' Apple IDs during the initial setup process.

But one key feature of the Mac App Store is that a single purchased license permits downloading of the software to any machines owned or controlled by the person linked to that Apple ID and logged in with the account. That key feature means that the iLife licenses issued to new computers via the Mac App Store permit users to download the software to their other Macs that may not have been upgraded to the latest version of iLife.

Purchase an app on your laptop, and you can launch the Mac App Store app on your iMac, click the Purchases button, and install that same app without having to purchase it again.

The iLife license you get when you set up one of the latest Macs is no different. Which means that if you haven’t yet gotten around to upgrading to iLife ’11, buying a new Mac mini or MacBook Air essentially gets you iPhoto, iMovie, and GarageBand for all your Macs running OS X 10.6.6 or later (since you need at least that version of Snow Leopard to run the Mac App Store). And this isn’t sneaky or dishonest—it’s right there in the Mac App Store’s software license.

The report notes that the policy only applies to iPhoto, iMovie and GarageBand, as Apple is in the process of phasing out iWeb and iDVD and does not offer them for download via the Mac App Store or include them on the new MacBook Air and Mac mini. The applications were included in the boxed version of iLife '11, but did not receive any meaningful updates from the iLife '09 versions, meaning that users with fully-updated iLife '09 installed are already running the most up-to-date versions of iWeb and iDVD anyway.

AnandTech takes a look at the Thunderbolt controller used by Apple in the new MacBook Air, finding that the company has opted to use a scaled-down "Eagle Ridge" controller chip from Intel instead of the "Light Ridge" chip found in larger Thunderbolt-enabled machines.

[Light Ridge] features four Thunderbolt channels (4 x 10Gbps bidirectional = 80Gbps aggregate bandwidth) and up to two DisplayPort outputs. It's used in the 2011 iMac, MacBook Pro and Mac mini. ...

Eagle Ridge is available in two form factors (normal and SFF [small form factor]) and is effectively half of a Light Ridge chip. That means you only get two Thunderbolt channels and one DP output. Apple used the small form factor version of Eagle Ridge in its new MacBook Air to cut cost and save on motherboard real estate.

With Eagle Ridge only supporting a single DisplayPort output, MacBook Air users are only able to drive a single external display via the Thunderbolt port, although the machine's integrated Intel HD Graphics 3000 would also preclude the use of two external monitors on the MacBook Air as it does on the 13-inch MacBook Pro.

Thunderbolt adoption has thus far been limited to high-end devices in part due to high costs associated with inclusion of the technology. Use of the scaled-down Eagle Ridge controller could help push Thunderbolt into lower-end products, presuming that the smaller chip carries some cost savings for manufacturers.

Just hours after research firm IDC released data showing Apple dramatically outpacing the overall mobile phone industry in year-over-year growth for the second quarter of 2011, Strategy Analytics has confirmed that Apple has indeed become the world's largest smartphone manufacturer. In that smaller but faster-growing submarket, Apple dethroned long-time leader Nokia and just barely held off a fast-rising Samsung to take the top spot.

Alex Spektor, Senior Analyst at Strategy Analytics, said, “Global smartphone shipments grew a healthy 76 percent annually to reach a record 110 million units in Q2 2011. We had previously reported on Apple becoming the largest smartphone vendor in terms of revenue and profits. Now, just four years after the release of the original iPhone, Apple has become the world’s largest smartphone vendor by volume with 18 percent market share. Apple’s growth remained strong as it expanded distribution worldwide, particularly in China and Asia.”

With both Apple and Nokia reporting their quarterly financial results last week, it was confirmed that Apple had passed Nokia, but some analysts had suggested that Samsung might surge past both companies on the strength of its Android-based handset sales. While Samsung did indeed achieve remarkable 520% year-over-year smartphone growth to move from 5.0% of the market to 17.5%, Apple's performance was strong enough to at least temporarily take the crown with 18.5% of the market.

Update: ABI Research has just released similar data showing Apple on top of the smartphone market with Samsung in a close second.

ABI Research Senior Analyst Michael Morgan comments: “Although Apple’s 142% YoY growth placed it as number one this quarter, Samsung’s 500% YoY growth shows that going forward, the top smartphone OEM position is Samsung’s to lose.”

ABI Research estimates that 47 million Android phones were sold during the quarter, giving the platform 46.4% of the smartphone market, more than double that of the iPhone.

Research firm IDC today released results for global mobile phone sales for the second quarter of 2011, showing strong growth for Apple as it sits firmly in fourth place and closes quickly on LG in the race for third place among global phone vendors.

Apple maintained its number four position overall but closed the gap on Top 5 competitors thanks to another record unit shipment quarter. The company easily posted the highest growth rate of the worldwide leaders despite the fact that its flagship iPhone 4 is now more than a year old. The triple-digit shipment volume growth allowed Apple to more than double its share when compared to the same quarter last year. Apple’s ability to bring its smartphone momentum to developing economies, where it’s less successful, will help dictate the company’s smartphone fortunes in future.

Apple's share of the global market grew to 5.6% after hitting the 5% milestone last quarter, and grew up over 140% year-over-year against the backdrop of a market that grew by only 11.3% overall.

IDC within the next few days should be breaking down the data to reveal results for smartphones specifically, and while Apple has been reported to have passed Nokia to become the world's largest smartphone vendor, some analysts have suggested that Samsung may have ridden Android's popularity to even stronger growth that may have allowed it to surpass Apple last quarter.

Apple may be looking at an acquisition of bookseller Barnes & Noble, according to an "unproven source" at BGR:

We received a tip from an unproven source claiming to have knowledge of discussions within Apple to possibly purchase Barnes & Noble...

This unproven source also said that iTunes 11 would be released in September along with iOS 5 and iCloud, and will support reading iBooks on computers as well as textbook purchases and rentals.

It's unclear what Apple would gain from such a purchase. B&N has more than 700 stores plus another 600 college bookstores, as well as decent digital penetration with its own eBookstore and Nook e-reader.

Barnes & Noble is currently trading with a market cap just above $1b, which would be a very small dent in Apple's $76 billion cash pile, though the price would obviously be higher as a takeover premium.

We're a little skeptical about the whole thing and mention it primarily to encourage conversation. If Apple really wanted to purchase a bookseller, it could have bought Borders at fire sale prices. Wall Street seems unimpressed by the rumor: Barnes & Noble's stock price is flat on the day.

(Image via Flickr/cjc4454)

As noted by This is my next..., Logitech today revealed that its Google-TV based "Revue" set-top box has been a complete flop, actually recording negative sales numbers last quarter as returns exceeded new sales. In response, Logitech has announced that it will be slashing the Revue's price from $249 to a below-cost $99 and taking a $34 million charge to cover the loss.

Google TV had been seen as a major push into combining television viewing with Internet content, but got off to a rough start as Google asked manufacturers to hold off on introducing Google TV hardware as it sought to refine the software. But the Logitech Revue had already hit the market as a launch product for the concept, and has been unable to find a footing in the consumer market.

Apple has long been treading carefully in the television market with the Apple TV, and Steve Jobs noted in an interview at the D8 conference in June 2010 that the subsidized set-top boxes used by cable companies have squashed innovation in the television market.

On the future of television: "Subsidized set-top boxes have squashed innovation because no one wants to pay for separate boxes...ask TiVo, Roku, us, Google in a few months. The set-top box needs to be torn up and redesigned to get people things they way they want them. And there's no go-to-market strategy for that. With the iPhone, and now the iPad, we could partner with carriers, but television is very balkanized...everything is local.

Apple made its next attempt at the television market a few months later with the second-generation Apple TV, but even still that is primarily a hub for iTunes content with a few third-party streaming services like Netflix, MLB.tv, and NBA League Pass also being supported. Apple has repeatedly referred to the Apple TV as a "hobby", noting that the company feels that "there is something there" but that television presents a very difficult challenge for developing a go-to-market strategy.

For several years, analysts and other sources have been claiming that Apple is trying to develop its own Apple-branded television set integrating iTunes Store connectivity. The company's only public statements on the matter have, however, expressed strong disinterest in such a move given the competitive environment and low margins in the industry, but Apple has certainly been known to publicly dismiss certain ideas even as it has been working on implementing them.

While Apple released new MacBook Air and Mac mini models alongside OS X Lion last week, the company also updated its other Mac lines to begin shipping them with Lion. But Apple changed a bit more than just the operating system on those models, as MacTrast details with a comparison of a new MacBook Pro with Lion pre-installed to another MacBook Pro purchased just a few months ago.

The difference between the two versions is immediately obvious from the product packaging, as the artwork now shows a machine with the OS X Lion default desktop image rather than the Mac OS X Snow Leopard one. Apple has also tweaked part numbers and manuals to reflect the change to Lion.

And, as seen in Apple's standalone keyboards, the company has also quietly tweaked the MacBook Pro's keyboard to convert the F3 key's function from Exposé to Mission Control and the F4 key's function from Dashboard to Launchpad.

Finally, Apple no longer includes restore discs of any sort, a move that could cause difficulties for the occasional user who finds the need or desire to perform a clean install of Lion on a bare hard drive. Apple's new MacBook Air and Mac mini models support a Lion feature called Internet Recovery that allows the operating system to be reinstalled to a bare hard drive, but other current hardware now shipping with Lion does not support the feature.

For its part, Apple does not consider hard drives to be user-replaceable components on most machines and would expect users experiencing failures of their hard drives to go through Apple for replacement during the one-year warranty period, under which circumstances Apple would of course provide a replacement drive with Lion installed. But for other circumstances, Apple has clearly made it difficult for users to perform clean installs of OS X Lion on new hard drives on their own. The Lion USB thumb drive set to debut next month will offer one solution for the problem, but represents a separate $69 purchase for users who are already licensed to use Lion through their machine purchases.