First, by the numbers for FYQ4-2012 reported this week:
– Apple reported quarterly revenue of $36 billion and net profit of $8.2 billion, up from $28.3 billion and $6.6 billion year-over-year, respectively
– Gross margin was 40%, compared with 40.3% in the year-ago quarter
– International sales accounted for 60% of total quarterly revenue
– Apple closed the quarter with $121.3 billion in cash, an increase of over $4 billion
– For FY 2012 Apple generated $41 billion in net income and more than $50 billion in operating cash flow
– Apple sold a record 4.9 million Macs, a 1% increase year-over-year (IDC puts growth of the global PC market at -8%)
– The Mac has now outpaced the rest of the PC industry for more than six years
– Portables made up 80% of the quarterly Mac mix
– This week announced an all new iMac, new Mac Mini and MacBook Pro 13-inch with Retina display
– Apple sold 26.9 million iPhones, up 58% year-over-year (IDC’s estimates 45% growth for the global smartphone market)
– iPhone sales in Greater China grew by 38%
– Working hard to meet iPhone 5 demand, which is not yet in line with supply — same good problem as iPhone 4S a year ago
– Apple sold 14 million iPads in the quarter, up 26% year-over-year
– Sold its 100 millionth iPad
– iPad is now being deployed or piloted by 94% of Fortune 500 companies
– iPad sales in China are up 45%
– The iTunes Store generated a new revenue high of almost $2.1 billion in the quarter
– Apple sold 5.3 million iPods, compared with 6.6 million in the year-ago quarter
– iPod touch continues to make-up over half of the iPods sold, and iPod maintains 70+% share in the US, according to NPD
– Sold 2.1 million Apple TV units in the quarter, totaling more than 5 million for the fiscal year
– There are more than 200 million devices running iOS 6 just one month since its launch
– There are more than 700,000 apps in the App Store, with more than 275,000 designed specifically for iPad
– Customers have downloaded more than 35 billion apps
– Apple has paid over $6.5 billion to developers to date
– Apple retail stores generated record results of $4.2 billion in revenue, an increase of 18% year-over-year
– Opened 18 new stores in 10 countries in the quarter, including our first store in Sweden and second in Hong Kong
– Our stores hosted 94 million visitors in the quarter, vs 77.5 million in the year-ago quarter
– Apple retail stores sold a record 1.1 million Macs
What’s Missing From Apple’s FY-2013 Product Portfolio?
Apple’s fiscal 2013 first quarter is the holiday season of 2012. What’s missing from the newly enriched Apple product portfolio?
First, Apple has basically exited the workstation business by failing to keep the Mac Pro within a generation of Intel’s Xeon technology. There’s really no excuse for not keeping up, but like the xServe server product, when Apple is ready to exit a market, it strangles it first. A Mac Pro update to the Xeon E5-2600 generation would be a step in continuity.
Second, there’s now a significant divergence between the (old and frayed) Intel/Microsoft alliance and Apple. For the first time in five years since the first MacBook Air came out, Wintel offer more advanced laptops and all-in-one desktops. That’s because with Windows 8 laptops and all-in-ones can use a touch-sensitive display with gestures ala Apple iPad. In fact, new convertible laptops such as Lenovo’s Yoga can be either a tablet or a laptop depending on the mood or application of the user. Dell, HP, Acer, Asus are also in the touch laptop market with the Windows 8 launch, and they too are doing convertibles.
Reprising the 1980s, I want my MacBook Touch.
Third, Apple has dropped the ball on merging iPhone/iPad’s iOS with Mac’s OS X. Wanna run iPad apps on your Mac? You can’t do that. Apple has been asked by customers (and analysts) for four years to deliver apps on OS X, but has not brought the two OS’s together.
Why not allow iOS apps on OS X? Yes, the two operating systems are meant for different microprocessor architectures with different instruction sets. That’s a computer science problem that an ARM emulator or emulator in a virtual partition could solve on any current Intel processor, probably by a grad student with access to the source code. It’s not that difficult a technology problem. So, after all this time, I conclude that Apple doesn’t want to allow users to merge their iOS device and PC worlds. That’s a shame, and also an opportunity for everybody else.
Fourth, the new iPad Mini is just a first step. I expect significant business and education uptake for this 8″ tablet. In business, look to transaction workers who need to record observations, such as nurses and physicians in e-medicine. The 10″ full-size iPad is not a one-hand device and at 1.5 pounds, tiring. The Mini’s roughly half the weight, and thus easier for long walks around the business. In 2013, you’ll see the iPad Mini cropping up as a major business go-to technology. You’ll see variations on the Mini’s form-factor.