Apple related Press Releases

Apple Becomes World's Most Profitable Handset Vendor in Q3 2009

Phil Goldstein — Wed, 11 Nov 2009 10:00:09 -0500

Boston, MA - November 11, 2009 - According to the latest research from Strategy Analytics, Apple became the world's most profitable handset vendor in Q3 2009. Nokia slipped into second position, as margins have been hit hard by both the economic downturn and a stagnant presence in the United States.

Alex Spektor, Analyst at Strategy Analytics, said, "We estimate Apple's operating profit for its iPhone handset division stood at $1.6 billion in the third quarter of 2009. Apple overtook Nokia for the first time, which recorded a lower $1.1 billion of operating profit. With strong volumes, high wholesale prices and tight cost controls, the PC vendor has successfully broken into the mobile phone market in just two years."

Neil Mawston, Director of the Wireless Device Strategies service (WDS) at Strategy Analytics, added, "Nokia's profit margin for its handset division has been shrinking during the 2009 global economic downturn. Strategy Analytics believes that the United States, where Nokia now trails Apple in marketshare, is the key to Nokia's recovery in 2010. A successful fight on Apple's high-profit home turf can simultaneously help to revitalize Nokia's margins and to put a check on Apple's surging growth."

Global Handset Operating Profits (US$ Billions)    Q3 '09
                                     Apple    1.6
                                     Nokia    1.1
                      Source: Strategy Analytics

The full report, Apple Becomes World's Most Profitable Handset Vendor in Q3 2009, is published by the Strategy Analytics Wireless Device Strategies (WDS) service, and may be seen at http://tinyurl.com/sa00823

About Strategy Analytics:
Strategy Analytics is a global, independent research and consulting firm. The company is headquartered in Boston, USA. Visit www.strategyanalytics.com for more information.

Europe Contact: Neil Mawston / +44 1908 423 628 / NMawston@strategyanalytics.com
USA Contact: Alex Spektor / +1 617 614 0726 / ASpektor@strategyanalytics.com
Asia Contact: Thomas Kang / +82 10 2874 8133 / TKang@strategyanalytics.com

Apple Announces Over 100,000 Apps Now Available on the App Store

Jason Ankeny — Wed, 04 Nov 2009 09:10:13 -0500

Apple® today announced that developers have created over 100,000 apps for the revolutionary App Store, the largest applications store in the world. iPhone® and iPod touch® customers in 77 countries can choose from an incredible range of apps in 20 categories, including games, business, news, sports, health, reference and travel. App Store users have downloaded well over two billion apps, continuing to make it the world’s most popular applications store.

“The App Store, now with over 100,000 applications available, is clearly a major differentiator for millions of iPhone and iPod touch customers around the world,” said Philip Schiller, Apple’s senior vice president of Worldwide Product Marketing. “The iPhone SDK created the first great platform for mobile applications and our customers are loving all of the amazing apps our developers are creating.”

“The App Store has forever changed the mobile gaming industry and continues to improve,” said Travis Boatman, vice president of Worldwide Studios, EA Mobile. “With a global reach of over 50 million iPhone and iPod touch users, the App Store has allowed us to develop high quality EA games that have been a huge success with customers.”

“With 10,000 downloads a day, worldwide customer response to our I Am T-Pain App has exceeded our wildest expectations,” said Jeff Smith, CEO of Smule. “The App Store has given us a unique opportunity to create and grow a very successful business, and we’re looking forward to an exciting future.”

Apple continues to improve search and discovery with new features including Genius for Apps, App Store Essentials selections, sub category listings and more valuable customer reviews. With the recently introduced iTunes® 9, it’s also now easier than ever to organize and sync your apps right in iTunes and they will automatically appear on your iPhone or iPod touch with the same layout.

The release of iPhone OS 3.0 this summer made over 100 new features available to iPhone and iPod touch users including Cut, Copy and Paste; MMS; landscape view for Mail, Text and Notes; stereo Bluetooth; shake to shuffle; parental controls; automatic login at Wi-Fi hot spots and Push Notifications. These new features have been incredibly popular with customers and there have already been more than two billion Push Notifications sent to apps available from the App Store. Additionally, the recently introduced In App Purchase feature for free apps means leading developers will now be able to offer customers the choice of buying content, subscriptions and digital services from directly inside their apps.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone.

Apple Reports Fourth Quarter Results

Phil Goldstein — Mon, 19 Oct 2009 15:41:23 -0400

October 19, 2009 4:30 PM ET

Most Profitable Quarter Ever; Record Mac and iPhone Sales

CUPERTINO, Calif. Oct. 19 /PRNewswire-FirstCall/ -- Apple today announced financial results for its fiscal 2009 fourth quarter ended September 26, 2009. The Company posted revenue of $9.87 billion and a net quarterly profit of $1.67 billion, or $1.82 per diluted share. These results compare to revenue of $7.9 billion and net quarterly profit of $1.14 billion, or $1.26 per diluted share, in the year-ago quarter. Gross margin was 36.6 percent, up from 34.7 percent in the year-ago quarter. International sales accounted for 46 percent of the quarter's revenue.

In accordance with the subscription accounting treatment required by GAAP, the Company recognizes revenue and cost of goods sold for iPhone(TM) and Apple TV over their estimated economic lives. Adjusting GAAP sales and product costs to eliminate the impact of subscription accounting, the corresponding non-GAAP measures* for the quarter are $12.25 billion of "Adjusted Sales" and $2.85 billion of "Adjusted Net Income."

Apple sold 3.05 million Macintosh computers during the quarter, representing a 17 percent unit increase over the year-ago quarter. The Company sold 10.2 million iPods during the quarter, representing an eight percent unit decline from the year-ago quarter. Apple sold 7.4 million iPhones in the quarter, representing seven percent unit growth over the year-ago quarter.

"We are thrilled to have sold more Macs and iPhones than in any previous quarter," said Steve Jobs, Apple's CEO. "We've got a very strong lineup for the holiday season and some really great new products in the pipeline for 2010."

"We are delighted with our September quarter and fiscal 2009 results," said Peter Oppenheimer, Apple's CFO. "For the full year, we grew revenue by 12 percent and net income by 18 percent in extraordinarily challenging times. Looking ahead to the first fiscal quarter of 2010, we expect revenue in the range of about $11.3 billion to $11.6 billion and we expect diluted earnings per share in the range of about $1.70 to $1.78."

Apple will provide live streaming of its Q4 2009 financial results conference call utilizing QuickTime, Apple's standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PDT on October 19, 2009 at www.apple.com/quicktime/qtv/earningsq409/ and will also be available for replay for approximately two weeks thereafter.

*Non-GAAP Financial Measures

During fiscal 2007, the Company began selling iPhone and Apple TV. Because the Company may provide unspecified features and additional software products to iPhone and Apple TV customers in the future free of charge, in accordance with GAAP, specifically FASB ASC 985-605, formerly known as AICPA SOP 97-2, the Company recognizes revenue and cost of goods sold for these products on a straight-line basis over their economic lives, with any loss recognized at the time of sale. Currently, the economic lives of these products are estimated to be 24 months. This accounting treatment, referred to as subscription accounting, results in the deferral of almost all of the revenue and cost of goods sold during the quarter in which the products are sold to the customer. Other costs related to these products, including costs for engineering, sales, marketing and warranty, are expensed as incurred. Further, the costs to develop any future unspecified features and additional software products that may eventually be provided to customers also are expensed as incurred. In contrast, the Company generally recognizes revenue and cost of goods sold for its other products, such as Macs and iPods, at the time of sale, as the Company does not provide future unspecified features or additional software products to those customers free of charge.

In July 2008, the Company began selling iPhone 3G, the second-generation iPhone, and at that time significantly expanded distribution by establishing carrier relationships in over 70 countries. Unit sales of iPhone 3G have been significantly greater than sales of the first-generation iPhone. During the first quarter of iPhone 3G availability ended September 27, 2008, 6.9 million units were sold, exceeding the 6.1 million first-generation iPhone units sold in the prior five quarters combined.

In June 2009, the Company began selling iPhone 3GS, the third-generation iPhone. Unit sales of iPhones continued to be significant in the quarter ended September 26, 2009, with 7.4 million iPhones sold. As a result, the amount of revenue and product cost related to those iPhone sales that the Company deferred for recognition in future periods under subscription accounting was substantial. While the GAAP results provide significant insight into the Company's operations and financial position, management continues to supplement its analysis of the business using financial measures that look at the total sales, related product costs and resulting income for iPhones and Apple TVs sold to customers during the period. The presentation at the end of this press release includes the following non-GAAP measures: "Adjusted Sales," "Adjusted Cost of Sales," "Adjusted Gross Margin," "Adjusted Operating Margin," "Adjusted Net Income" and "Adjusted Diluted Earnings per Share." These financial measures are not consistent with GAAP because they do not reflect the deferral of revenue and product costs for recognition in later periods. The above-mentioned non-GAAP measures are generated by adjusting the related GAAP measures solely to reverse the effect of subscription accounting. The Company uses these financial measures, along with other measures discussed below, to provide additional insight into current operating and business trends not readily apparent from the GAAP results.

Management uses Adjusted Sales to evaluate the Company's growth rate, revenue mix and performance relative to competitors. Given the impact of iPhone unit sales during the quarter ended September 26, 2009, Adjusted Sales provides a meaningful measurement of the Company's growth by reflecting amounts generally due to Apple at the time of sale related to products sold within the period. Further, eliminating the effects of deferred revenue (current sales deferred to future periods and prior sales being recognized currently) provides more transparency into the Company's underlying sales trends. Management uses the non-GAAP measures of "Adjusted Cost of Sales," "Adjusted Gross Margin" and "Adjusted Operating Margin" to measure the Company's operating performance based on current period iPhone and Apple TV sales and to facilitate ongoing operating decisions. Additionally, because the Company recognizes engineering, sales, and marketing expenses as incurred, including expenses related to iPhone and Apple TV, management uses Adjusted Sales to evaluate returns on those costs, to manage year-over-year operating expense growth, and to budget future expenses. Furthermore, because they are considered meaningful indicators of current business performance, the non-GAAP measures "Adjusted Sales" and "Adjusted Operating Margin" are metrics that factor into the determination of management compensation beginning in fiscal year 2009. Finally, management uses the non-GAAP measures of "Adjusted Net Income" and "Adjusted Diluted Earnings per Share" to measure the Company's operating performance based on current period iPhone and Apple TV sales, to facilitate ongoing operating decisions, and compare performance relative to competitors.

Management believes that these non-GAAP financial measures, when taken together with the corresponding consolidated GAAP measures and related segment information, provide incremental insight into the underlying factors and trends affecting both the Company's performance and its cash generating potential. Management believes these non-GAAP measures increase the transparency of the Company's current results and enable investors to more fully understand trends in its current and future performance.

Cautions on Use of Non-GAAP Measures

As noted previously, these non-GAAP financial measures are not consistent with GAAP because they do not reflect the deferral of revenue and product costs for recognition in later periods. These non-GAAP financial measures do not adjust for the costs associated with the Company's intention to provide unspecified new features and software to purchasers of iPhone and Apple TV products. These costs are expensed as incurred under GAAP's subscription accounting model, and are not adjusted in these non-GAAP financial measures. As such, these non-GAAP financial measures are not intended to reflect in a given period all of the costs of sales made in that period. Rather, the non-GAAP financial measures presented below are intended for the limited purpose of presenting performance measures that include the total sales, related product costs, and resulting income for iPhones and Apple TVs in the period those products are sold to customers.

Management believes investors will benefit from greater transparency in referring to these non-GAAP financial measures when assessing the Company's operating results, as well as when forecasting and analyzing future periods. However, management recognizes that:

these non-GAAP financial measures are limited in their usefulness and should be considered only as a supplement to the Company's GAAP financial measures;
these non-GAAP financial measures should not be considered in isolation from, or as a substitute for, the Company's GAAP financial measures;
these non-GAAP financial measures should not be considered to be superior to the Company's GAAP financial measures; and
these non-GAAP financial measures were not prepared in accordance with GAAP and investors should not assume that the non-GAAP financial measures presented in this earnings release were prepared under a comprehensive set of rules or principles.

Further, these non-GAAP financial measures may be unique to the Company, as they may be different from non-GAAP financial measures used by other companies. As such, this presentation of non-GAAP financial measures may not enhance the comparability of the Company's results to the results of other companies.

A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure or measures appears at the end of this press release.

This press release contains forward-looking statements including without limitation those about the Company's estimated revenue and earnings per share. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company's reaction to those factors, on consumer and business buying decisions with respect to the Company's products; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company's gross margin; the inventory risk associated with the Company's need to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company's business currently obtained by the Company from sole or limited sources; the effect that the Company's dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; the Company's reliance on the availability of third-party digital content and applications; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the Company's dependency on the performance of distributors and other resellers of the Company's products; the effect that product and service quality problems could have on the Company's sales and operating profits; the Company's reliance on sole service providers for iPhone in certain countries; the continued service and availability of key executives and employees; war, terrorism, public health issues, and other circumstances that could disrupt supply, delivery, or demand of products; potential litigation from the matters investigated by the special committee of the board of directors and the restatement of the Company's consolidated financial statements; and unfavorable results of other legal proceedings.

More information on potential factors that could affect the Company's financial results is included from time to time in the Company's public reports filed with the SEC, including the Company's Form 10-K for the fiscal year ended September 27, 2008, its Forms 10-Q for the quarters ended December 27, 2008, March 28, 2009 and June 27, 2009, and its Form 10-K for the fiscal year ended September 26, 2009 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

� 2009 Apple Inc. All rights reserved. Apple, the Apple logo, Mac, Mac OS, Macintosh, iPhone, Apple TV and QuickTime are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

            UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
     (In millions, except share amounts which are reflected in thousands and
                                per share amounts)



                               Three Months Ended       Twelve Months Ended
                              September   September     September  September
                                  26,         27,           26,        27,
                                 2009        2008          2009       2008

    Net sales                   $9,870      $7,895       $36,537    $32,479
    Cost of sales (1)            6,256       5,156        23,397     21,334

    Gross margin                 3,614       2,739        13,140     11,145

    Operating expenses:
    Research and
     development (1)               358         298         1,333      1,109
    Selling, general
     and administrative (1)      1,063         999         4,149      3,761

        Total operating
         expenses                1,421       1,297         5,482      4,870

    Operating income             2,193       1,442         7,658      6,275

    Other income and expense        45         140           326        620

    Income before provision
     for income taxes            2,238       1,582         7,984      6,895

    Provision for income taxes     573         446         2,280      2,061

    Net income                  $1,665      $1,136        $5,704     $4,834

    Earnings per common share:
      Basic                      $1.85       $1.28         $6.39      $5.48
      Diluted                    $1.82       $1.26         $6.29      $5.36

    Shares used in computing
     earnings per share:
      Basic                    898,032     887,110       893,016    881,592
      Diluted                  914,374     904,786       907,005    902,139

    (1) Includes stock-based
        compensation expense
        as follows:
          Cost of sales            $29         $21          $114        $80
          Research and
           development             $66         $52          $258       $185
          Selling, general
           and administrative      $85         $68          $338       $251

                  UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                        (In millions, except share amounts)

                                              September 26,     September 27,
                                                  2009              2008

                               ASSETS:

    Current assets:
      Cash and cash equivalents                  $5,263           $11,875
      Short-term marketable securities           18,201            10,236
      Accounts receivable, less allowances
        of $52 and $47, respectively              3,361             2,422
      Inventories                                   455               509
      Deferred tax assets                         2,101             1,447
      Other current assets                        6,884             5,822
        Total current assets                     36,265            32,311

    Long-term marketable securities              10,528             2,379
    Property, plant and equipment, net            2,954             2,455
    Goodwill                                        206               207
    Acquired intangible assets, net                 247               285
    Other assets                                  3,651             1,935
        Total assets                            $53,851           $39,572


                LIABILITIES AND SHAREHOLDERS' EQUITY:

    Current liabilities:
      Accounts payable                           $5,601            $5,520
      Accrued expenses                            3,376             3,719
      Deferred revenue                           10,305             4,853
        Total current liabilities                19,282            14,092
    Deferred revenue - non-current                4,485             3,029
    Other non-current liabilities                 2,252             1,421
        Total liabilities                        26,019            18,542

    Commitments and contingencies

    Shareholders' equity:
      Common stock, no par value; 1,800,000,000
       shares authorized; 899,805,500 and
       888,325,973 shares issued and
       outstanding, respectively                  8,210             7,177
      Retained earnings                          19,538            13,845
      Accumulated other comprehensive income         84                 8
        Total shareholders' equity               27,832            21,030

        Total liabilities and
         shareholders' equity
                                                $53,851           $39,572

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions)

                                                       Twelve Months Ended
                                                      September     September
                                                          26,           27,
                                                         2009          2008
    Cash and cash equivalents,
     beginning of the year                             $11,875         $9,352

    Operating Activities:
       Net income                                        5,704          4,834
    Adjustments to reconcile net income to
     cash generated by operating activities:
       Depreciation, amortization and accretion            703            473
       Stock-based compensation expense                    710            516
       Deferred income tax benefit                        (519)          (368)
       Loss on disposition of property,
        plant and equipment                                 26             22
    Changes in operating assets and liabilities:
       Accounts receivable, net                           (939)          (785)
       Inventories                                          54           (163)
       Other current assets                             (1,050)        (1,958)
       Other assets                                     (1,346)          (492)
       Accounts payable                                     92            596
       Deferred revenue                                  6,908          5,642
       Other liabilities                                  (184)         1,279

         Cash generated by operating activities         10,159          9,596

    Investing Activities:
       Purchases of marketable securities              (46,724)       (22,965)
       Proceeds from maturities of
        marketable securities                           19,790         11,804
       Proceeds from sales of marketable securities     10,888          4,439
       Purchases of other long-term investments           (101)           (38)
       Payments made in connection with business
        acquisitions, net of cash acquired                   -           (220)
       Payment for acquisition of property,
        plant and equipment                             (1,144)        (1,091)
       Payment for acquisition of intangible assets        (69)          (108)
       Other                                               (74)           (10)

         Cash used in investing activities             (17,434)        (8,189)

    Financing Activities:
       Proceeds from issuance of common stock              475            483
       Excess tax benefits from stock-based
        compensation                                       270            757
       Cash used to net share settle equity awards         (82)          (124)

         Cash generated by financing activities            663          1,116

    (Decrease)/Increase in cash and
      cash equivalents                                  (6,612)         2,523

    Cash and cash equivalents, end of the year          $5,263        $11,875

Supplemental cash flow disclosure: Cash paid for income taxes, net $2,997 $1,267

                 UNAUDITED CONSOLIDATED SCHEDULE OF DEFERRED REVENUE
                                   (In millions)


                                        September 26,  June 27,  September 27,
                                             2009        2009        2008

    Deferred revenue - current:
      iPhone and Apple TV                   $8,519      $6,767      $3,518
      AppleCare                                791         725         599
      Other                                    995         977         736
        Total deferred revenue - current    10,305       8,469       4,853

    Deferred revenue - non-current:
      iPhone and Apple TV                    3,618       2,860       2,262
      AppleCare                                688         653         651
      Other                                    179         154         116
        Total deferred revenue -
         non-current                         4,485       3,667       3,029

        Total deferred revenue             $14,790     $12,136      $7,882

    UNAUDITED RECONCILIATION OF NON-GAAP TO GAAP RESULTS OF OPERATIONS
    (In millions, except share amounts which are reflected in thousands and
    per share amounts)

                                        Three Months Ended September 26, 2009
                                          As reported
                                         in accordance  Non-GAAP
                                            with GAAP  Adjustments   Non-GAAP


    Net sales                                 $9,870    $2,383(a)     $12,253
    Cost of sales                             $6,256      $791(b)      $7,047

    Gross margin                              $3,614    $1,592(c)      $5,206

    Operating expenses                        $1,421           $-      $1,421

Operating income $2,193 $1,592(c) $3,785

Net income $1,665 $1,184(d) $2,849

Earnings per diluted common share $1.82 $1.30(e) $3.12

    Shares used in computing diluted
     earnings per share                      914,374                 914,374

                                        Three Months Ended September 27, 2008
                                          As reported
                                         in accordance  Non-GAAP
                                            with GAAP  Adjustments   Non-GAAP

    Net sales                                 $7,895    $3,787(a)     $11,682
    Cost of sales                             $5,156    $1,975(b)      $7,131

    Gross margin                              $2,739    $1,812(c)      $4,551

    Operating expenses                        $1,297           $-      $1,297

Operating income $1,442 $1,812(c) $3,254

Net income $1,136 $1,301(d) $2,437

Earnings per diluted common share $1.26 $1.43(e) $2.69

    Shares used in computing diluted
     earnings per share                      904,786                  904,786


    Footnotes:

    (a) Non-GAAP adjustment to net sales reflect (i) the reversal of the
        current period's amortization of deferred revenue derived from
        iPhone handsets and Apple TV units shipped in current and prior
        periods and (ii) the inclusion of amounts generally due to Apple at
        the time of sale related to iPhone handsets and Apple TV units
        shipped in the current period.

    (b) Non-GAAP adjustment to cost of sales reflect (i) the reversal of the
        current period's amortization of deferred cost related to iPhone
        handsets and Apple TV units shipped in current and prior periods and
        (ii) the inclusion of the total cost of iPhone handsets and Apple TV
        units shipped in the current period. In addition, the non-GAAP
        adjustment to cost of sales reflects the estimate of the warranty
        expense in the period when the related product is sold, rather than
        when the expense is incurred. The non-GAAP adjustment to cost of sales
        does not reflect the cost of providing unspecified additional software
        products and upgrades.

    (c) Non-GAAP adjustments to gross margin and operating income are the
        difference between non-GAAP adjustments to net sales and non-GAAP
        adjustments to cost of sales {(a) - (b)}.

    (d) Represents the after-tax effect of the non-GAAP adjustments to gross
        margin and operating income. The tax effect on the non-GAAP
        adjustments to gross margin and operating income is estimated by
        applying the period's effective tax rate to the non-GAAP adjustments.
        The tax effect on the non-GAAP adjustments is $408 million and $511
        million for the three-month periods ended September 26, 2009 and
        September 27, 2008, respectively. The non-GAAP adjustment to net
        income does not reflect any changes to the Company's other income and
        expense.

    (e) Represents the per share impact of the non-GAAP adjustments to net
        income.

                                      Apple Inc.
                           Q4 2009 Unaudited Summary Data


                                    Q3 2009         Q4 2008         Q4 2009
                                   ---------       ---------       ---------

                                CPU    Revenue   CPU   Revenue  CPU    Revenue
    Operating Segments         Units K   $M    Units K   $M    Units K   $M
                               ------- ------- ------- ------- ------- -------
      Americas                   1,147  $3,827   1,121  $3,572   1,252  $4,297
      Europe                       626   2,006     611   1,723     761   2,491
      Japan                        108     416      78     320      79     434
      Retail                       492   1,496     596   1,718     670   1,867
      Other Segments (1)           230     592     205     562     291     781

                                 -----  ------   -----  ------   -----  ------
    Total Operating Segments     2,603  $8,337   2,611  $7,895   3,053  $9,870
                                 =====  ======   =====  ======   =====  ======



                                       Revenue         Revenue         Revenue
    Product Summary            Units K   $M    Units K   $M    Units K   $M
                               ------- ------- ------- ------- ------- -------
      Desktops (2)                 849  $1,129     936  $1,363     787  $1,086

      Portables (3)              1,754   2,200   1,675   2,257   2,266   2,866

    Subtotal
     CPUs                        2,603   3,329   2,611   3,620   3,053   3,952
                                10,215   1,492  11,052   1,660  10,177   1,563
      Other Music
       Related
       Products and
       Services (4)                        958             832           1,018
      iPhone and
       Related
       Products
       and
       Services (5)              5,208   1,689   6,892     806   7,367   2,297
      Peripherals and
       Other Hardware                      341             428             393
      Software,
       Service and
       Other Sales             iPod        528             549             647
                                           ---             ---             ---
    Total
     Apple                              $8,337          $7,895          $9,870
                                        ======          ======          ======



                                                                 Year/
                                    Sequential Change         Year Change
                                  ---------------------      -------------
    Operating Segments            CPU Units    Revenue  CPU Units    Revenue
                                  -----------  -------  -----------  -------
      Americas                          9%        12%        12%        20%
      Europe                           22%        24%        25%        45%
      Japan                           -27%         4%         1%        36%
      Retail                           36%        25%        12%         9%
      Other Segments (1)               27%        32%        42%        39%

    Total Operating Segments           17%        18%        17%        25%

                                                                 Year/
                                    Sequential Change         Year Change
                                  ---------------------      -------------
    Product Summary                  Units      Revenue    Units      Revenue
                                    -------    -------    -------    -------
      Desktops (2)                     -7%        -4%       -16%       -20%

      Portables (3)                    29%        30%        35%        27%

    Subtotal
     CPUs                              17%        19%        17%         9%
      iPod                              0%         5%        -8%        -6%
      Other Music
       Related Products
       and Services (4)                            6%                   22%
      iPhone and Related
       Products and
       Services (5)                    41%        36%         7%       185%
      Peripherals and
       Other Hardware                             15%                   -8%
      Software, Service
       and Other Sales                            23%                   18%
    Total
     Apple                                        18%                   25%

    (1)  Other Segments include Asia Pacific and FileMaker.
    (2)  Includes iMac, Mac mini, Mac Pro and Xserve product lines.
    (3)  Includes MacBook, MacBook Air and MacBook Pro product lines.
    (4)  Consists of iTunes Store sales, iPod services, and Apple-branded
         and third-party iPod accessories.
    (5)  Units consist of iPhone handset sales; Revenue is derived from
         handset sales, carrier agreements, and Apple-branded and
         third-party iPhone accessories.

    K = Units in thousands               $M = Amounts in millions

SOURCE Apple

Apple's App Store Downloads Top Two Billion

Jason Ankeny — Mon, 28 Sep 2009 08:50:09 -0400

Apple® today announced that more than two billion apps have been downloaded from its revolutionary App Store, the largest applications store in the world. There are now more than 85,000 apps available to the more than 50 million iPhone(TM) and iPod touch® customers worldwide and over 125,000 developers in Apple's iPhone Developer Program.

"The rate of App Store downloads continues to accelerate with users downloading a staggering two billion apps in just over a year, including more than half a billion apps this quarter alone," said Steve Jobs, Apple's CEO. "The App Store has reinvented what you can do with a mobile handheld device, and our users are clearly loving it."

Today, iPhone and iPod touch customers in 77 countries worldwide can choose from an incredible range of apps in 20 categories, including games, business, news, sports, health, reference and travel. With the recently introduced iTunes® 9, it's now easier than ever to organize and sync your apps right in iTunes and they will automatically appear on your iPhone or iPod touch with the same layout.

© 2009 Apple Inc. All rights reserved. Apple, the Apple logo, Mac, Mac OS, Macintosh, iPhone, iPod touch and iTunes are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

Apple Approves First Official Porn Star App for iPhone

Jason Ankeny — Tue, 22 Sep 2009 09:16:43 -0400

GrindHouse Mobile Inc., the premier technical provider for adult mobile application development, including iPhone, Android, Blackberry, Symbian OS, Palm, Windows Mobile and others, has just launched "Version 1.0" of the first and only official pornstar iPhone® application for Sunny Leone and the official application for adult nude super star Aria Giovanni. Both of these brand new sexy apps are available now in the Apple iTunes® store.

Adult super star Sunny Leone's first app, the free "lite version" that offers exclusive pictures, a blog and video clips, is now available. Version 2.0, a premium version with more features, photo sets and videos is currently awaiting approval. Version 2.0 is packed with all new interactive features, games, blogs and ways to contact Sunny right from your phone, plus tons of additional high quality exclusive content. When asked about her new App, Sunny Leone commented: "I'm so excited about the future of my iPhone® App. This provides an entire new way for me to communicate with my fans and give them a new and unique content experience!"

Former Penthouse® Pet, Aria Giovanni, is one of the world's most well recognized nude centerfold models. Her official iPhone® app is the second adult application developed by Grindhouse and approved by Apple®. It is currently available in the App Store. Version 2.0 is pending approval and will include several new features, more content and a few surprises for her fans. "I'm thrilled with my new App and can't wait for Version 2.0 to hit the App store. It's going to blow my fans away. Thank you Apple for approving my App and giving my fans another way to follow my life and modeling career," said Aria.

While developing the first two adult themed iPhone® Apps and getting them approved by Apple®, Grindhouse closely followed Apple's strict guidelines. The first version of Sunny Leone's App was declined due to the explicit nature of the content. "It was just a little too 'hot' for Apple's compliance department," said a representative from Grindhouse. "We worked closely with Apple to meet all of their guidelines while developing an offering that is compelling and user friendly."

These two stars are the first of many entertainment related mobile applications to be released by Grindhouse, including some of the largest brand names and adult superstars in the adult industry. The next major release will include "The girls of Erotica.com." Coming to your mobile phone soon...

For more information on Grindhouse Mobile, please visit www.grindhousemobile.com. Sunny Leone's official website can be found at sunnyleone.com and Aria's official site is ariagiovanni.com

Apple Premieres iTunes 9

Jason Ankeny — Thu, 10 Sep 2009 09:11:18 -0400

Apple® today introduced iTunes® 9, the latest version of the world’s most popular software application to purchase, manage and play media, packed with innovative features such as iTunes LP, Home Sharing and Genius Mixes, as well as a redesigned store and improved syncing. iTunes 9 makes it easier than ever to discover, purchase and enjoy your music, movies, TV shows, and apps for iPhone™ and iPod touch® from Apple’s revolutionary App Store. Plus, Home Sharing now lets you easily transfer songs, movies and TV shows to other computers in your home.

“iTunes 9 is a great iTunes release, with innovative features that make using iTunes better than ever and iTunes content richer than ever,” said Steve Jobs, Apple’s CEO. “iTunes LP, for example, lets artists share more of their creativity with fans and gives music lovers the feeling of being immersed in an entire album with art, lyrics, liner notes, photos and videos.”

iTunes LP is the next evolution of the music album delivering a rich, immersive experience for select albums on the iTunes Store by combining beautiful design with expanded visual features like live performance videos, lyrics, artwork, liner notes, interviews, photos, album credits and more. iTunes LP debuts today with albums including Bob Dylan’s “Highway 61 Revisited,” Norah Jones’ “Come Away With Me,” The Grateful Dead’s “American Beauty” and Dave Matthews Band’s “Big Whiskey and the GrooGrux King: iTunes Pass.” The new iTunes Extras provides a similar experience for movies on iTunes with features including documentaries, deleted scenes, interviews and interactive galleries. iTunes Extras is now available for select movies including “Twilight,” “Batman Begins,” “WALL-E,” “Iron Man” and “The Da Vinci Code.” Customers can enjoy iTunes LP and iTunes Extras on a Mac® or PC.

iTunes 9 also introduces Home Sharing, which lets you easily transfer music, movies and TV shows among up to five authorized computers in your home. Family members can now view up to five iTunes libraries on their home network, see only the portion of these libraries they don’t already have, import their favorite content directly to their own libraries, and automatically add new purchases from other computers into their library.

The incredibly popular Genius feature gets even better with Genius Mixes which are created using the results of over 27 million music libraries with over 54 billion songs that have been submitted and analyzed by Genius. The new Genius Mixes feature is like having a “Genius” DJ that automatically generates up to 12 endless mixes of songs from your iTunes library that go great together.

With improved syncing in iTunes 9 and iPhone OS 3.1, you can now organize your iPhone apps right in iTunes and they will automatically appear on your iPhone with the same layout. Plus, syncing music, photos, movies and TV shows is easier than ever with the added ability to sync music by artist and genre and sync photos by Events and Faces. The iTunes Store on iPhone now features precut ringtone downloads with over 20,000 ringtones priced at just $1.29.

iTunes 9 is available immediately as a free download at www.itunes.com.

The iTunes Store is the world’s most popular online music, TV and movie store with a catalog of over 11 million songs, over 50,000 TV episodes and over 7,500 films including over 2,000 in stunning high definition video. With Apple’s legendary ease of use, pioneering features such as iTunes Movie Rentals, integrated podcasting support, the ability to turn previously purchased tracks into complete albums at a reduced price, and seamless integration with iPod® and iPhone, the iTunes Store is the best way for Mac and PC users to legally discover, purchase and download music and video online.

mPortal Helps Develop Converged Services Client for Comcast on the iPhone™ and iPod touch®

Jason Ankeny — Wed, 02 Sep 2009 10:46:20 -0400

mPortal, Inc., a leading enabler of mobile user experiences, today announced that it assisted Comcast in developing Comcast mobile for the iPhone^TM and iPod touch®. Working closely with Comcast, mPortal was a key part of the end-to-end application development.

The Comcast mobile app provides key features of Comcast Digital Voice®, Digital Cable, and High-Speed Internet services to iPhone and iPod touch devices. Comcast leveraged mPortal's mobile experience in launching a truly converged media experience for mobile users.

"This is mPortal's first commercial application launch with Comcast, marking the first true converged application for a cable company on a mobile device," said Alec Walker, Vice President of Strategic Accounts at mPortal. "Together with the Comcast team, we designed a very rich and conveniently accessible converged voice, data, email and video experience for Comcast subscribers using the iPhone or iPod touch. This is the next stage in the evolution in converged services, extending traditional IP and broadband services to the flexible and dynamic mobile platform."

Among other features, the first release of the Comcast mobile app includes the ability to:

* Check Comcast email and listen to home voice mail in one combined inbox.
* Read, reply, forward and compose email as well as read attachments supported by the iPhone.
* Manage voice mail messages and call logs, view voice mail in any preferred order as well as "touch" to call.
* Forward home phone calls to the iPhone from the iPhone, view call history and manage home phone settings.
* See what's on TV tonight, tomorrow or next week, including program details.
* Watch Video On Demand movie trailers.
* Synch all Universal Address Book contacts to an iPhone or iPod touch as well as the ability to add pictures to favorite contacts.

"The Comcast mobile iPhone and iPod touch applications demonstrate true convergence in mobile, offering Comcast customers a very convenient portal for accessing voice, data, email and video services at their fingertips," said J. Gerry Purdy, Ph.D., Vice President and Chief Analyst of the Mobile and Wireless Group at Frost & Sullivan. "There are more opportunities to bring other cable operators and media companies into mobile, and mPortal is well positioned to assist them."

mPortal enables service providers, content providers and enterprises to create, deploy and monetize content and applications across mobile networks and devices. To support customer initiatives, mPortal has launched a New Business Initiatives (NBI) Business Unit, adding services expertise to complement its product foundation. NBI focuses on the increasing demand for custom wireless applications and services across the mobile content and applications landscape, armed with a team of skilled developers, designers, engineers and mobile product strategists. The company's SPRINGBOARD suite of products comprise of a configurable software client solution and a mobile content delivery manager that provides an end-to-end solution for easy discovery, download, purchase and delivery of content and applications. mPortal provides enables mobile user experiences for data services unlike any other offering available in the marketplace today across multiple handsets and networks worldwide.

To view a video demonstration of the Comcast mobile application, go to: http://www.comcast.net/video/Comcast/1167153437/ .

About mPortal

mPortal Inc., founded in 2000, enables mobile content and applications for Mobile Network Operators (MNOs), Mobile Virtual Network Operators (MVNOs), Cable Operators, Content Providers and Enterprises. mPortal's products and services assist its customers to create, launch, manage, and monetize mobile content and applications across multiple mobile devices and networks. As a total solution provider, mPortal eliminates the complexities involved in launching mobile content and applications. With mPortal as a strategic partner, its customers focus on their core business and rely on mPortal to provide its expertise and experience in launching revenue-generating mobile content and applications. mPortal's customers include top tier mobile operators, leading MVNOs, content providers , and Fortune 500 enterprises customers. Some of the customers are Alltel, AOL, Disney Mobile, Mobile ESPN, Reliance Infocomm, TV Guide, Verizon Wireless and XEROX. mPortal has offices in the US and India and serves a variety of global customers. For more information, please visit www.mportal.com.

Vonage Obtains Application Approval for iTunes App Store

Jason Ankeny — Wed, 02 Sep 2009 10:14:55 -0400

Vonage (NYSE: VG) has announced that Apple approved its mobile application for iPhone and iPod Touch. Vonage is currently conducting a beta test and general availability will be announced at a later date.

This new service, along with the recent launch of the Vonage World unlimited calling plan, continues Vonage's heritage of using innovative technology to create significant value for its current and future customers.

Digital Music Increases Share of Overall Music Sales Volume in the U.S.

Jason Ankeny — Wed, 19 Aug 2009 10:56:17 -0400

According to The NPD Group, a leading market research company, while CDs remain the most popular format for paid music purchases, digital music sales are making up an ever-greater share of U.S. music sales. CDs comprised 65 percent of all music sold in the first half of 2009 compared to paid digital downloads, which comprised 35 percent of music sales. By comparison, paid digital music downloads comprised just 20 percent of sales in 2007 - growing to 30 percent of the music market last year.

"Many people are surprised that the CD is still the dominant music delivery format, given the attention to digital music and the shrinking retail footprint for physical products," said Russ Crupnick, vice president of entertainment industry analysis "But with digital music sales growing at 15 to 20 percent, and CDs falling by an equal proportion, digital music sales will nearly equal CD sales by the end of 2010."

According to NPD MusicWatch, when it comes to the unit-sales volume of music sold at retail - including paid digital music downloads and CDs - Apple iTunes leads in the U.S. with 25 percent of music units sold, which is up from 21 percent in 2008 and 14 percent in 2007. Walmart (including Walmart, Walmart.com, Walmart Music Downloads) remains in second position with 14 percent of music volume sold at their stores and Web sites with Best Buy ranked third.

iTunes also continued to solidify its lead in the digital music arena, as consumer downloads from iTunes comprised 69 percent of the digital music market in the first half of 2009, followed by AmazonMP3 at 8 percent. Walmart leads all sellers of CDs with a 20 percent share of the physical music market, followed by Best Buy at 16 percent and Target and Amazon tied at 10 percent each.

"The growth of legal digital music downloads, and Apple's success in holding that market, has increased iTunes's overall strength in the retail music category," said Russ Crupnick, entertainment industry analyst for The NPD Group. "But the importance of the big box retailers shouldn't be dismissed, as long as the majority of music consumers continue to buy CDs."

Data note: The information in this press release is from NPD's consumer tracking of U.S. consumers, age 13 and older, who reported their purchases of physical product (CDs), digital music, and wireless over-the-air (OTA) transactions -- excluding ringtones. In addition, NPD only tracks digital music tracks and albums sold a-la-carte, not music purchased under subscription.

Dr. Eric Schmidt Resigns from Apple's Board of Directors

Jason Ankeny — Mon, 03 Aug 2009 09:32:17 -0400

Apple(R) today announced that Dr. Eric Schmidt, chief executive officer of Google, is resigning from Apple's Board of Directors, a position he has held since August 2006.

"Eric has been an excellent Board member for Apple, investing his valuable time, talent, passion and wisdom to help make Apple successful," said Steve Jobs, Apple's CEO. "Unfortunately, as Google enters more of Apple's core businesses, with Android and now Chrome OS, Eric's effectiveness as an Apple Board member will be significantly diminished, since he will have to recuse himself from even larger portions of our meetings due to potential conflicts of interest. Therefore, we have mutually decided that now is the right time for Eric to resign his position on Apple's Board."