MacRumors


Apple today issued a media alert announcing details for next Tuesday's release of its financial results for the third fiscal quarter and second calendar quarter of 2011. As usual, the results will be released after the close of Tuesday's trading at approximately 4:30 PM Eastern / 1:30 PM Pacific. Apple's conference call discussing the results will follow at 2:00 PM Pacific and will be available via a live audio webcast. MacRumors will provide running coverage of the conference call highlights.

Apple's conference call webcast discussing Q3 - 2011 financial results will begin at 2:00pm PT/5:00pm ET on Tuesday, July 19, 2011.

Please note that comments made during this call may include forward-looking statements that are subject to risks and uncertainties, and that actual results may differ materially from these forward-looking statements. For more information on the factors that could influence results, please refer to Apple's SEC filings.

Apple's third fiscal quarter of 2011 saw the introduction of new Thunderbolt-equipped iMacs in early May, and also marked the first full quarter of availability for the iPad 2. Apple also quietly introduced new Time Capsule and AirPort Extreme base stations near the close of the quarter. Most of the rest of the company's Mac product lines have been awaiting the release of OS X Lion before seeing updates, while the iPhone did not see its traditional June introduction within the quarter.

3q11 earnings call
For the quarter, analysts are predicting net earnings of $5.73 per share on revenue of $24.75 billion, above Apple's guidance of $5.03 profit per share on $23 billion of revenue. Apple's year-ago results for the third fiscal quarter of 2010 included net earnings of $3.51 per share on revenue of $15.7 billion.

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PCMag reports that Verizon and AT&T's upcoming LTE ("4G") networks will be incompatible with each other:

Thinking of unlocking a Verizon Wireless LTE phone for use on AT&T's network, or vice versa? Think again. Verizon Wireless confirmed today that its LTE phones will not "be compatible on other LTE networks in the U.S." because "the phones will be on different frequencies," according to Verizon spokeswoman Brenda Raney.

LTE is the next generation data transfer technology beyond 3G and is frequently labeled 4G.

It turns out that AT&T and Verizon will be using different frequencies for their LTE implementations which will make it more difficult for manufacturers to support both networks. Of course, it's possible to support multiple networks in a single device, but it does require additional consideration in communication parts and antenna design.

Apple presently offers two separate iPhone models to support Verizon's CDMA and AT&T's GSM networks, but Apple is expected to consolidate support into a single device with the iPhone 5. Meanwhile, rumors point to Apple holding off on supporting LTE until at least the 2012 iPhone revision.

tsmcReuters reports that Taiwanese manufacturer TSMC has already started a trial manufacturing of the A6 system-on-chip for Apple, Inc.

Apple has been reported to be shifting its chip manufacturing from Samsung to a "non-competititor" such as TSMC. Whether TSMC actually wins the contract from Apple will depend on their ability to produce a high enough yield of the A6 processors.

"TSMC has got all the authorization and details ready. Whether Apple puts in a formal order will depend on the yield rate," the source said.

Such a shift to TSMC would be a significant loss to Samsung. Apple has become Samsung's biggest customer with over $7.8 billion in product contracts this year. The two companies, however, have had an increasingly uneasy relationship with lawsuits and accusations that Samsung has been copying Apple's iPhone and iPad products.

The A6 will be the successor to Apple's A5 system-on-chip which presently powers the iPad 2. Like the A4 before it, the A5 contains an ARM processor, graphics processing unit and RAM for Apple's mobile devices. The A5 is also expected to power the upcoming iPhone 5.

It's not clear what additional improvements we'll see with the A6 chip, but one possibility is the incorporation of the latest PowerVR Series 6 GPU which promises a significant graphical performance boost to the current implementation. The A6 chip has been previously rumored to be shipping in 2012.

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AllThingsD weighs in on the MacBook Air rumors that have been circulating the past few weeks. They claim that the long awaited MacBook Air will arrive "late next week" according to "several sources".

Several sources indicate that the company plans to uncrate the eagerly anticipated updates to its MacBook Air line late next week. “The rumor sites are off by a week,” one source said.

AllThingsD says to look for an announcement Thursday or Friday and that the new MacBook Airs will sport a Thunderbolt port, backlit keyboards, and 128GB and 256GB storage options.

As we pointed out before, Apple will have to release OS X Lion at the same time or before the new hardware releases. So, expect OS X Lion sometime next week as well.

Related Roundup: MacBook Air
Related Forum: MacBook Air

Earlier this week, Apple began inviting developers to submit their OS X Lion apps for inclusion in the Mac App Store, preparing to populate the store with apps capable of taking advantage of some of the new features being deployed in the new operating system.

wordcrasher lion
It's only been a few days, but Apple is already beginning to approve those Lion-capable apps, as noted by OS X Daily in the case of WordCrasher [Mac App Store].

WordCrasher now takes advantage of new OS X Lion features:

- Full-screen. Use the full-screen button or press CONTROL + COMMAND + F to toggle fullscreen mode under OS X Lion.
- Resume. Close WordCrasher at any time and resume your game right where you left it. Restart your Mac, and WordCrasher will resume straight away.

Several other recent app updates have mentioned fixing issues with performance under Lion, but WordCrasher appears to be the first third-party app update to be approved specifically mentioning Lion-only features. Apple has pushed out a number of updates for its own apps this week, including the iLife '11 suite and Aperture, with those updates also quietly adding Lion-only features such as full-screen support.

iphone4 heroAn unsourced report from Sohu.com, a Chinese website, claims the iPhone 5 is delayed because Apple's A5 processor (currently in the iPad 2) is overheating in the iPhone 5 (via Google Translate):

Due to the emergence of Apple's current A5 processor overheating problem, so Apple will not soon be launching a new generation of the iPhone 5 smartphones, but Apple will launch this fall is still an iPhone 4, enhanced mobile products or the name iPhone 4S, this iPhone 4S is mainly based on the iPhone 4 on minor upgrades and no significant upgrade.

Apple is widely expected to introduce a new iPhone later this year, and regardless of whether it is dubbed the "iPhone 5" or some other name, there has been considerable disagreement over whether the device will be a major revamp or simply a minor upgrade (or both, by launching two new phones) to the existing iPhone 4. Some have suggested that the confusion stems from Apple testing the substantially-revamped iPhone 5 internals within iPhone 4-like enclosures for secrecy, so it is far from certain just what Apple is planning to introduce for its next iPhone update.

Hat tip to 9to5Mac.

Related Forum: iPhone

Concord Securities analyst Ming-Chi Kuo today reported to AppleInsider that "industry checks" within Apple's supply chain suggest that the company is boosting the specs on its MacBook Air in the expected refresh to a minimum of 128 GB of solid state storage and 4 GB of RAM. That refresh has been widely rumored for some time, with Apple reportedly holding off until OS X Lion is released to the public to launch the new MacBook Air.

In a communication to AppleInsider on Thursday, Concord Securities analyst Ming-Chi Kuo said his industry checks suggest Apple is no longer placing orders MacBook Airs with 2GB of RAM. Instead, those checks indicate that all new 11.6- and 13.3-inch models will include 4GB of RAM as standard, as it will improve performance of Mac OS X Lion, also due to ship on each model.

Similarly, Kuo cited the same checks in suggesting that Airs with just 64GB solid-state-drives may go away in favor of Apple shipping only 128GB and 256GB models as standard, given that the bulk of Apple's shipments have been for models containing those larger drives.

The current MacBook Air models all carry 2 GB of RAM in their stock configurations, although they can be upgraded to 4 GB for $100 on build-to-order configurations. On the storage side, Apple's entry-level 11.6-inch model offers 64 GB of solid state storage, with users able to step up to 128 GB on the high-end model. The 13.3-inch MacBook Air already offers a minimum of 128 GB with the high-end model sporting 256 GB.

macbook air 2010 profile
Kuo also indicates that Apple will continue to use a separate board for the solid state drive rather than shifting to new technology soldered directly onto the motherboard. He also suggests that Apple will likely adopt the following Sandy Bridge chips from Intel for the updated MacBook Air models: 1.6 GHz Core i5-2467M, 1.7 GHz Core i7-2637M, and 1.8 GHz Core i7-2677M.

Kuo has proven to have solid connections when it comes to MacBook Air information, as evidenced by his revelation last July that Apple was working on an 11.6-inch model, a machine that appeared alongside a revamped 13.3-inch model in October.

Outcome: The MacBook Airs were updated but kept 64GB SSDs and 2GB RAM as the minimums.
Related Roundup: MacBook Air
Related Forum: MacBook Air

Reuters reports that Apple's Korean unit has paid out the equivalent of $946 after losing a lawsuit over the company's collection of iPhone location data. The judgment was issued in May, and Apple is said to have made the payment last month.

Apple Inc's Korean unit has paid compensation to a user of its popular iPhone after collecting location data without consent, lawyers and court officials said, the first payout by the U.S. company over these complaints.

In May, Apple Korea was ordered by the court to pay 1 million won ($946) in compensation to Kim Hyung-suk, a lawyer, two officials at Changwon District Court told Reuters on Thursday.

Emboldened by the successful lawsuit, Kim's law firm is now preparing a class action lawsuit over the location issue, and a website set up at sueapple.co.kr to allow interested users to sign on to the lawsuit has been overwhelmed by traffic.

sueapple co kr
Several lawsuits have already been filed in the United States over the issue, which was cast into the public light by independent researchers back in April. Apple responded to the controversy one week later, clarifying that the observed location data was actually nearby cell tower and access point data being downloaded to users' iPhones to assist with geolocation rather than the devices' actual locations as defined by GPS. Apple did, however, acknowledge several bugs in the way the location data was being handled, and addressed those issues with iOS 4.3.3 in early May.

Related Forum: iPhone

Taiwanese site Apple.pro has posted [Google translation] photos of what is claimed to be the dock connector and ribbon cable for the next-generation iPad.

ipad 3 dock connector 1
While the part is a proprietary but relatively standard one that provides no specific insight into the device's specs, one interesting observation is that the actual connector portion is white rather than the black color seen on the iPad 2. The dock connector on the iPad 2 is embedded in the curved aluminum shell of the iPad 2 and not the black or white bezel, and is in fact black on all models.

Consequently, it is possible that this white dock connector portends a modified case design in which the dock connector itself would be preferred to be white, as is found on white iPhone 4 models. The dock connector on the original iPad was white, however, despite the fact that the device came only in black and the connector was similarly embedded in the aluminum shell.

ipad 3 dock connector 2
There are of course no guarantees that the part depicted in the photos is indeed a genuine dock connector for the iPad 3 as claimed, but the part carries a very similar form factor to the existing part and a part number updated from 821-1180-A in the iPad 2 to a newer 821-1259-06. The tail end of the ribbon cable also makes a 90-degree turn in the new part, whereas the iPad 2's dock connector ribbon cable is entirely straight.

Apple has been rumored to be introducing some sort of updated iPad in the fall timeframe, with most sources suggesting that it should be considered a "pro" or "plus" version of the existing iPad 2 carrying a higher-resolution display rather than a full-fledged iPad 3. But it is unclear from these posted photos whether the part is indeed claimed to be from the rumored "iPad 2 Pro" or an iPad 3 that would presumably make its debut in 2012.

Apple.pro has in the past posted photos of genuine Apple parts, most notably last year in the case of a small touchscreen that made its way into the redesigned iPod nano a few months later.

Related Roundup: iPad
Buyer's Guide: iPad (Neutral)
Related Forum: iPad

Streaming music firm Spotify today announced the immediate launch of its beta phase offerings in the United States, debuting as an invitation-only free service paired with two different paid tiers: Unlimited at $4.99/month and Premium at $9.99/month.

spotify premium unlimited
The Spotify app for iPhone [App Store] is also now live in the U.S. App Store, and a subscription to the Premium service is required for mobile device access.

During our invite-only beta phase, we'll be offering three great services - from absolutely free to paid subscriptions. The services we're launching today are:

- Spotify Free - the unsurpassed free music service. With an invite, enjoy on-demand, buffer-free access to over 15 million songs on your computer and great social features. Manage your own music files through Spotify, and sync with your cellphone or iPod. Features occasional advertising.

- Spotify Unlimited - all the special features of our free service, but with uninterrupted, ad-free access to Spotify on your computer. All for only $4.99 a month.

- Spotify Premium - the top-of-the-range Spotify experience. Premium gives you access to all the music, all the time. Listen online or offline, on your computer, your cellphone and a whole heap of other devices. Enjoy enhanced sound quality and access to exclusive content, competitions and special offers. Premium costs just $9.99 a month. (That's the equivalent of a couple of fancy coffees.)

Spotify's free service is debuting in the U.S. with exclusive ad partners Coca-Cola/Sprite, Chevrolet, Motorola, Reebok and Sonos, who are said to be developing specific and innovative ad campaigns for the platform.


Spotify has seen a fair amount of success in Europe, but the service's much-anticipated U.S. launch has been delayed several times as the company sought to acquire approvals from the major record labels. Those pieces began falling into place over the past few weeks, enabling Spotify to finally bring its offerings to the United States.

lioninstallThere have been expectations that Apple could release OS X Lion this week, potentially as early as tomorrow (July 14th). A few doubts, however, have been introduced in the past couple of days. LoopInsight's Jim Dalrymple tweeted this evening that he hopes "you guys don't lose too much sleep waiting for the new Macs and Lion tomorrow :)", suggesting that release won't happen on Thursday. Dalrymple's been known to have some inside Apple contacts in the past.

Meanwhile, Arstechnica's John Siracusa said during his podcast (within first two minutes) on 5by5.tv that he'd also heard that Lion is not coming this week. Siracusa, however, describes the information as "third-hand, fourth-hand" information.

So while neither source is particularly concrete about their predictions, given the anticipation surrounding OS X Lion's release, we thought it worth noting.

If we do believe that OS X Lion isn't coming this week, then despite the leaked part numbers, it's almost certain the new hardware will also not launch this week. At this stage Apple is expected to launch the new MacBook Airs and Mac Minis with Lion pre-installed, so they can't launch the machines without first officially releasing OS X Lion to the public.

For Apple's part, they have only promised that OS X Lion will ship in July, and have made no promises about new hardware.

Research firms Gartner and IDC today released their preliminary quarterly personal computer shipment data, offering up a picture of market performance during the second quarter of 2011. Overall, the PC industry exhibited small growth on a worldwide scale, with unit shipments growing by about 2.5% between the second quarters of 2010 and 2011. But shipments in the U.S. actually declined year-over-year by about 4-6% according to the two firms. Gartner in particular points to the iPad as having had a detrimental effect on PC shipments for the quarter.

"Given the hype around media tablets such as the iPad, retailers were very conservative in placing orders for PCs. Instead, they wanted to secure space for media tablets. Some PC vendors had to lower their inventory through promotions, while others slimmed their product lines at retailers," [Gartner analyst Mikako] Kitagawa said.

According to Gartner's report, Apple surged into third place in the U.S. market, up from fifth place a year ago and even as recently as last quarter, grabbing a 10.7% share, up significantly from an 8.5% share in the prior-year quarter.

gartner 2Q11 us trend

Apple's U.S. Market Share Trend: 1Q06-2Q11 (Gartner)

Apple's U.S. unit growth for the quarter was 8.5% year-over-year according to Gartner, well ahead of the overall U.S. industry trend of a 5.6% decline. Only Toshiba at 3.3% joined Apple among the Top 5 manufacturers increasing their shipments year-over-year.

gartner 2Q11 us

Gartner's Preliminary U.S. PC Vendor Unit Shipment Estimates for 2Q11 (Thousands of Units)

IDC's report offers a similarly rosy picture for Apple, pegging its year-over-year unit growth in the U.S. at an even more substantial 14.7% while Toshiba at 3.7% was again seen as the only other member of the U.S. Top 5 to see year-over-year growth. Combined with Acer's sales plunging by over 25%, Apple's growth puts it in third place behind market leaders HP and Dell according to IDC's data, matching the 10.7% share seen by Gartner. Overall, IDC pegs the PC industry as having shrunk by 4.2% year-over-year.

As usual, neither Gartner nor IDC covered Apple's worldwide performance for the quarter, as the company does not rank in the top five by global shipments. But given that the worldwide market experienced only about 2.5% year-over-year growth, Apple appears to be continuing to make up ground on the rest of the industry.

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CNet UK reports that Apple UK seems to be increasing its retail store staffing for the period of August 16th to October 29th, 2011.

The post, which was sent to us by a tipster, asks for "full-time iPhone Sales Staff for an exciting project to work 5 days a week (Tuesday-Saturday) for the period 16th August - 29th October within key retail stores". The posting appears several times on Reed, with each post covering a different area of the UK.

The increased iPhone staffing, of course, triggers speculation that Apple may be launching a new iPhone during that time period. The window is fairly large spanning August through October, but coincides nicely with circulating rumors. Apple has been long rumored to be introducing the iPhone 5 in or around September.

The job listing was posted on July 12th and lists the Job Type as "temporary". The work involves selling/promiting mobile phones to generate and grow iPhone sales to ensure sales targets are met. A 4 day training event is required that dates from August 9th - 12th.

Related Forum: iPhone

volume
Alongside today's international App Store pricing changes, Apple has introduced a new Volume Purchase program for the App Store. According to Apple, the App Store Volume Purchase Program allows businesses and educational institutions in the U.S. to purchase apps in volume and distribute them within their organizations.

Streamline your purchasing process and put more power and productivity in the hands of your workforce. Every paid app in the App Store is available for businesses to buy in volume through the program website. Simply search for the apps you need, enter the quantity you want to buy, and complete the transaction with your corporate credit card. Apps are available for purchase at the same price listed in the App Store.

Apple had previously offered volume sales for educational institutions and is extending this to businesses. Business and Educational institutions will need to enroll in the program in order to participate.

Separately, Apple is also allowing businesses to sell and distribute custom business-to-business (B2B) apps for business customers. These custom B2B apps can be developed for specific needs and distributed to businesses through the same App Store mechanism. This allows third-party developers to produce custom deployments of apps specifically designed for clients that are using iOS devices.

Update: Apple's webpage for App Store Volume purchasing is now live and provides addition information and says it's "Coming Soon":

Whether you’re providing apps to two employees or ten thousand, the Volume Purchase Program makes it simple to find, buy, and distribute the apps your business needs.

The Volume Purchase Program also provides a way to purchase custom B2B apps built by third-party developers to meet the unique needs of your business.

The Volume Purchase Program for Business is coming soon to businesses in the United States.

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As part of its scheduled downtime, Apple has begun adjusting international App Store pricing to bring them in line with current exchange rates. The adjustments have resulted in both price increases and decreases depending on the geographic location. Here are pricing changes for the lowest ($0.99 USD) tiers:

UK: £0.59 -> £0.69
Australia: AU$1.19 -> AU$0.99
Japan: 115 -> 85 Yen
Mexico: $10 -> $12
Switzerland: 1.10Fr -> 1.00Fr
Norway: 6.00Kr -> 7.00Kr

The change reflects some recent complaints particularly pointing to the wide discrepancy in Australian App Store pricing as compared to the U.S. Not everyone is likely to be happy with the adjustments however, as the prices have gone up in the UK, Mexico and Norway.

As noted by MacStories, many of the countries affected were among those furthest out of line on pricing compared to the U.S.

The timing of the changes suggests that there may be some truth behind the recent claims that Apple will be adjusting international pricing on its soon to be announced hardware releases.

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According to the Wall Street Journal's sources, Amazon is planning to introduce a 9" tablet computer before October that will place it head-to-head against Apple's iPad.

The new tablet will intensify a growing clash between Amazon and Apple. The two tech-industry titans are already fighting for customers for their respective digital book, music and video businesses. Now Amazon will have a device that will compete closely against Apple's popular iPad, as well as other tablets such as Samsung Electronic Co.'s Galaxy Tab.

Amazon's tablet will use a 9-inch screen and run on Google's Android operating system. The device won't carry a camera like the iPad but will allow customers to watch videos, read eBooks and listen to music from Amazon. Meanwhile, Amazon will also be offering two updated versions of their popular Kindle e-reader around the same time. The report seemingly confirms a Digitimes story from June.

Apple's iPad continues to dominate the tablet market, but there have been rumors that Apple may be considering an iPad refresh as early as this fall which would place its release near Amazon's tablet launch. Amazon and Apple have become increasingly competitive over the years with recent disputes over the use of the "App Store" name.

aperture 3Apple today continued its parade of software updates ahead of the OS X Lion launch with the release of Aperture 3.1.3, providing a long list of improvements and undoubtedly quietly making some last-minute tweaks to ensure full compatibility with Lion.

This update supports general compatibility issues, and also addresses overall stability and performance. Minor issues addressed include the following:

- Improves reliability and performance when syncing web-published albums
- Slideshow exports are now handled as a background operation
- Crop tool now correctly supports use of gestures to define crop size
- Gesture support can now be enabled or disabled in Preferences
- Fixes an issue that could cause a blank sheet to display when placing a book or print order
- Published MobileMe, Facebook and Flickr albums now appear in a Web section in the Projects Inspector
- Shift-clicking snapshots on the Faces corkboard now allows you to make contiguous selections
- Metadata presets are now correctly applied to imported audio files
- Fixes an issue that could cause Aperture to quit unexpectedly when trimming audio in full screen mode
- Resolves various issues when adding names to Faces using accented, Japanese, Korean or Simplified Chinese characters
- Improves stability when browsing video clips
- Addresses reliability of library repair and rebuild

Full details on the update, which weighs in at 292.02 MB and requires Mac OS X 10.6.6 or later, are available in the release notes.

While much was made of Microsoft's efforts to reenter the retail store market by going head-to-head with Apple, things have moved rather slowly for the PC software company, which has opened only eleven stores scattered around the United States over the past two years.

microsoft future stores
But Neowin reports that Microsoft today unveiled an acceleration of those plans at its Worldwide Partner Conference, targeting 75 new stores for opening over the next two to three years. The initiative will also include some international stores, mirroring Apple's own recent emphasis on international locations.

Apple has approximately 350 retail store locations and continues to open new stores on a regular basis, meaning that Apple will remain significantly in the lead in terms of total stores by the end of this push from Microsoft, but it is clear that Microsoft is making a significant commitment to the initiative after only dabbling in it for the past two years.

Microsoft has mimicked Apple's retail strategy of trying to create warm and inviting spaces prominently featuring wood surfaces throughout in order to draw in customers to interact with the products on display, while also including an "Answer Desk" very similar to Apple's Genius Bars for support purposes. The company has even worked to strategically place its locations in close proximity to Apple's stores in an attempt to target many of the same customers. And while Microsoft has to rely on hardware from its partners in order to show off its PC offerings, the company's new retail push seems indicate that it is intent on establishing a retail rivalry with Apple.