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Apple Q1 2011 by the numbers: $26.7B revenue, $6.43 EPS, $2.3B above Street consensus

Publié: janvier 18, 2011, 10:45pm CET par Joe Wilcox
By Joe Wilcox, Betanews

[Editor's Note: This was a live document from 4:45 p.m. EDT through 6:35 p.m., following Apple's earnings call.]
This afternoon, Apple delivered record holiday sales results, reporting fiscal 2011 first quarter earnings after US stock markets closed. Investor anticipation about the quarter seemed to hold back a major stock sell off. Yesterday, when US markets were closed, Apple CEO Steve Jobs revealed that he would be taking another medical leave -- for indeterminate amount of time. The sudden and open-ended medical leave raises concerns that Jobs might not return. What then for Apple?
While some folks may quibble about the future, the present looks mighty fine. Once again, iOS devices delivered handsomely for Apple, particularly iPad and iPhone. Apple shipped 7.33 million iPads and 16.24 million iPhones during fiscal Q1. During today's earnings conference call, Apple CFO Peter Oppenheimer said that Apple had sold 160 million cumulative iOS devices. In total, iOS devices accounted for about 69 percent of the quarter's revenue.
Apple reported $26.7 billion revenue and net profits of $6 billion, or $6.43 a share. A year earlier, Apple reported revenue of $15.68 billion and $3.38 billion net quarterly profit, or $3.67 per share. Revenue rose by 71 percent.
Three months ago, Apple forecasted $23 billion in revenue with earnings per share of $4.80. Projected gross margins: 36 percent. Analyst average estimates were higher than Apple guidance: $24.38 billion revenue and $5.38 earnings per share. This is now an ongoing trend of the Street expecting more than guidance and Apple still beating consensus.
Gross margins fell from 40.9 percent in fiscal Q1 2010 to 38.5 percent in the current quarter. Sales in international markets accounted for 62 percent of revenue.
Looking ahead, Apple forecasts $22 billion in revenue for fiscal 2011 second quarter, with earnings per share of $4.90. Projected gross margins: 4.90 percent.
"We had a phenomenal holiday quarter with record Mac, iPhone and iPad sales," Jobs said in statement from his medical leave "We are firing on all cylinders and we've got some exciting things in the pipeline for this year including iPhone 4 on Verizon which customers can't wait to get their hands on."
During today's earnings conference call, analysts largely shied away from asking directly about Jobs' medical leave. However, one analyst probed by asking about future product planning. Apple COO Tim Cook discussed the corporate culture Jobs created. "Excellence has become a habit," he said.
Q1 2011 Revenue by Product
- Desktops: $1.73 billion, up 2 percent from $1.69 billion a year earlier.
- Portables: $3.7 billion, up 34 percent from $2.76 billion a year earlier.
- iPod: $3.43 billion, up 1 percent from $3.39 billion a year earlier.
- Music: $1.43 billion, up 23 percent from $1.16 billion a year earlier.
- iPhone: $10.47 billion, up 88 percent from $5.58 billion a year earlier.
- iPad: $4.6 billion; no comparable -- new product.
- Peripherals: $593 million, up 26 percent from $469 million a year earlier.
- Software & Services: $786 million, up 25 percent from $631 million a year earlier.
iPhone. Apple shipped 16.235 million iPhones worldwide during fiscal first quarter. A year earlier, Apple shipped 10.468 million iPhones. Apple counts shipments into the channel, typically making them several million units higher than numbers released by Gartner, which measures actual sales. Wall Street analyst average estimate was about 15.6 million units. I typically calculate the analyst estimates, but Philip Elmer-DeWitt has done such a remarkably good job, I want to draw attention to his compilation of analyst estimates. The aforementioned analyst estimate and those for products that follow come from his compilation.
Year over year, iPhone shipments rose 86 percent. The smartphone was available in 90 countries with an average selling price of $626.
Q1 2011 Unit Shipments by Product
- Desktops: 1.227 million units, down 1 percent from 1.234 million units a year earlier.
- Portables: 2.9 million units, up 37 percent from 2.13 million units a year earlier.
- iPod: 9.5 million units, down 7 percent from 20.98 million units a year earlier.
- iPhone: 16.24 million units, up 86 percent from 8.74 million units a year earlier.
- iPad: 7.33 million units; no comparable -- new product.
iPad. The tablet's impact on Apple simply cannot be understated. The company shipped 7.331 million tablets during the quarter for a total of14.789 million in just nine months. Apple's tablet generated nearly $10 billion in new revenue during the first nine months of availability. Analysts estimated 6.15 million iPads for the quarter. Apple's tablet was available in 46 countries, with average selling price of $600. Apple ended the quarter with expected 4-6 weeks inventory.
Earlier today, IDC initiated coverage of the so-called media tablet market. The analyst firm put Apple's tablet market share at 87.4 percent. IDC predicts that media tablet shipments ended the year with 17 million units. For 2011, IDC forecasts 44.6 million media tablets shipped, and 70.8 million units in 2011. But Apple likely will lose share. "Growth in 2011 and beyond will be driven by device vendors introducing media tablets based on Android and other operating systems, as well as price and feature competition and strong demand in both the consumer and commercial segments," according to IDC.
Q1 2011 Revenue by Geography
- Americas: $9.22 billion, up 51 percent from $6.1 billion a year earlier.
- Europe: $7.26 billion, up 44 percent from $5 billion a year earlier.
- Japan: $1.4 billion, up 83 percent from $783 million a year earlier.
- Asia Pacific: $4.99 billion, up 175 percent from $1.8 million a year earlier.
- Retail: $3.85 billion, up 95 percent from $1.97 billion a year earlier.
Computers. Mac shipments soared during the holiday quarter. Apple sold -- what company executives really mean by shipped -- 4.134 million Macs during the quarter, up from 3.362 million units a year earlier; growth was 23 percent year over year. Wall Street consensus was just over 4 million units worldwide. Oppenheimer cited strong MacBook Air as factor driving record Mac sales. Apple shipped 2.907 million portables compared to 1.227 million desktops. Apple's Mac business had "19 quarters straight of growing faster than the PC market,"Oppenheimer said. Apple ended the quarter with expected 3-4 weeks of channel inventory.
Last week, Gartner and IDC released preliminary fourth calendar quarter PC shipment data. In the United States, Apple shipped 1.734 million computers, for 15.2 percent year-over-year growth, according to IDC. However, Gartner put Apple shipments higher, at 1.86 million, with growth a much higher 23.7 percent. Both Gartner and IDC put Apple in fifth place -- down one spot and two, respectively. That's right, IDC had Apple as No. 3 in US PC shipments during Q3 2010 and now No. 5.
The market share drops also reveal something else not apparent from the year-over-year growth numbers. IDC put Apple US shipments as less than the previous quarter -- down from 1.999 million. Typically fourth quarter should be more. For example, HP's US PC shipments rose from 4.591 million in third quarter to 5.724 million in Q4, according to IDC. Dell and Toshiba shipments grew quarter over quarter, too. A Betanews analysis of the data reveals that iPad likely cannibalized Mac sales during the holiday quarter.
Apple's numbers suggest this, too. Mac shipments rose 6 percent sequentially, which is surprisingly low going into the holiday quarter. Mac sales in Apple retail stores fell 3 percent from the previous quarter. Geographic data suggests that iPad cannibalization is likely largely contained to the Americas. One analyst asked the cannibalization question during today's conference call. Cook cautiously answered by using a common media deflection tactic. He started by going on for some time cataloging the regions where Mac shipments outgrew the greater personal computer market. Finally he answered: "Yes, I think there is some cannibalization, But I also think there is some halo effect," referring to iPads leading to other Apple product sales. Cook rightly pointed out that in the broader sense, Apple's low PC share is an advantage. "The other guys lose a lot more," because of cannibalization.
Q1 2011 Unit Shipments by Geography
- Americas: 1.36 million units, up 15 percent from 1.19 million units a year earlier.
- Europe: 1.25 million units, up 17 percent from 1.1 million units a year earlier.
- Japan: 162,000 units, up 54 percent from 105,000 units a year earlier.
- Asia Pacific: 516,000 units, up 65 percent from 313,000 units a year earlier.
- Retail: 851,000 units, up 24 percent from 689,000 units a year earlier.
iPod. Apple shipped 19.446 million iPods during fiscal third quarter, down from 20.97 million a year earlier. Analyst consensus for fiscal Q1 was 17.75 million. Shipments of iPod touch grew 27 percent year over year and accounted for more than 50 percent of iPod sales. Apple ended the quarter with anticipated 4-6 weeks of inventory. Revenue for iTunes Store reached $1.1 billion.
Retail. Revenue rose 95 percent year over year, with Apple retail stores selling 851,000 Macs, compared to 689,000 a year earlier, up 24 percent. However units declined by 23,000 sequentially, which is highly unusual going into the holiday quarter. As aforementioned, I see that as signs of iPad cannibalizing Mac sales.
Apple opened 6 new stores in the quarter, for a total of 323 retail outlets worldwide -- 87 outside the United States. There was an average 321 stores open in the quarter, with average revenue of $12 million up from $7.1 million a year earlier. Apple retail stores had 75.7 million visitors during the quarter. Apple's highest trafficked and performing stores were the four in China.
This is a good place to briefly discuss geographic performance. Revenue rose 175 percent in Asia-Pacific year over year and 83 percent in Japan. Oppenheimer said that China generated $2.6 billion revenue during fiscal first quarter.
Copyright Betanews, Inc. 2010
Condition-heavy approval given to Comcast-NBCU merger by FCC and DOJ

Publié: janvier 18, 2011, 9:33pm CET par Tim Conneally

By Tim Conneally, Betanews

Today, the Federal Communications Commission conditionally approved the license transfers to create the Comcast-NBCU joint venture that contains the media content from Comcast and NBCU's properties. The FCC voted 4-1 in favor of the transaction with Commissioner Michael Copps casting the only dissenting vote. Simultaneously, the Department of Justice has approved the FCC's proposed content licensing conditions, but the Antitrust division has not yet given clearance to the merger.
"This is the most intense review the FCC has ever run for a single transaction," FCC officials said today.
The commission's main concerns with the transaction revolved around ensuring reasonable program access by competitors and consumers, encouragement of local programming, and equal accessibility to local and multi-lingual content. The commission imposed restrictions to allow rival Multichannel Video Programming Distributors to get access to the content owned by the joint venture ("offline") and restrictions to give OVDs ("Online Video Distributors") equal access to content.
"It is with far more comfortable optimism than fearful skepticism that I vote to affirm the joint venture between Comcast and NBC Universal. My staff and I collectively spent hundreds of hours dissecting the order and debating new language, envisioning how the potential harms could quickly become sad realities, and ways in which we could safely prevent them," Commissioner Clyburn said in the FCC's hearing Tuesday. "At all times, at the front of my mind, was whether or not this transaction is in the best interest of the public, and if it would end up doing more damage than good. I stressed over the thought of looking back at this, many years from now, and wishing that I could rescind my vote due to all of the negative effects that resulted from the merger of these two companies. But after all of my hesitation, soul-searching, and long hours of review, I am confident that, if the parties live up to the terms of the voluntary commitments from the applicants and the conditions that we have imposed on them, this transaction will result in more benefits to consumers than harms."
Of course, Hulu has been one of the biggest concerns in the merger proceedings. The FCC today said no divestiture from Hulu has been demanded of Comcast, but the operator is supposed to relinquish managerial control in the online video distribution site.
"Without such a remedy, Comcast could, through its seats on Hulu's board of directors interfere with the management of Hulu, and, in particular, the development of products that compete with Comcast's video service," a statement from the FCC said.
The other half of the joint venture's approval came today from the U.S. Department of Justice, which announced that it approved the licensing structure for Comcast and NBC Universal that the FCC laid out.
"The proposed settlement will preserve new content distribution models that offer more products and greater innovation, and the potential to provide consumers access to their favorite programming on a variety of devices in a wide selection of packages," the Department of Justice said today.
However, the Antitrust division, along with five state attorneys general (CA, FL, MO, TX, WA) have filed a civil antitrust lawsuit in the District Court of Washington DC, which alleges that the transaction could let Comcast limit competition from its cable, satellite, telephone, and online competitors. The lawsuits include settlement proposals from the five states.
"The Antitrust Division worked in close cooperation and unprecedented coordination with the Federal Communications Commission (FCC) to reach a result that fully protects competition, allowing businesses to bring new and innovative products to the marketplace, providing consumers with more programming choices," said Christine Varney, Assistant Attorney General in charge of the Department of Justice's Antitrust Division. "The conditions imposed will maintain an open and fair marketplace while at the same time allow the innovative aspects of the transaction to go forward."
Copyright Betanews, Inc. 2010
Calif. town considers shaming DUI offenders on Facebook

Publié: janvier 18, 2011, 9:30pm CET par Ed Oswald

By Ed Oswald, Betanews

Huntington Beach city council members are considering a unique way to fight back against drunk driving: posting the photos of repeat offenders to the police department's Facebook page. The idea is actually a scaled-back version of one proposed in November by Councilman Devin Dwyer, who originally wanted the photos of every DUI offender posted.
The problem of drunk driving is a serious one for this resort city a hour south of Los Angeles: according to the Associated Press, some 1,700 DUI arrests were made in 2009, and 195 were either killed or injured as a result of drunk driving. Huntington Beach ranks first among cities of its size for alcohol-related causalities.
No doubt, the idea is sure to rankle some. The police department is leery of backing the proposal as it may breed distrust and resentment among residents. A spokeperson for the deparment said the idea has "no value," arguing "law enforcement is not about public shaming."
Privacy advocates also criticize the move for obvious reasons. In the end, it appears to be a question of whether Dwyer's proposal would serve the greater good.
"My suggestion was motivated by the fact that many residents contacted me after a local newspaper stopped publishing [DUI arrests]," Dwyer said in a memo sent to city officials. "In my view, posting this information is a reasonable step to take to enhance the safety of Huntington Beach residents and visitors."
Police in the city debuted its official Facebook page late last year, but have since then used it for only promotional purposes. Using it for actual police actions would be something completely new.
Other police departments have similarly used Facebook and other social networking outlets to disseminate information on drunk drivers, however in most cases the efforts have not lasted long. At issue is the presumption of innocence, as well as whether it is legally okay for the police to release such information.
Copyright Betanews, Inc. 2010
Almost nobody uses Microsoft Office OneNote, Let's see how the iPhone changes that.

Publié: janvier 18, 2011, 7:51pm CET par Tim Conneally

By Tim Conneally, Betanews

Microsoft on Tuesday announced that the iOS version of OneNote is available for free download in the iTunes app store, the new note-taking app integrates with Windows Live services such as SkyDrive and Office Web Apps as well as the standalone Office OneNote 2010.
OneNote is entering its ninth year of availability in the Microsoft Office suite of products, and it has struggled to get Office users to jump in and just try it.
"We consider it the best application that no one is using," Jevon Fark, Office Marketing Manager told Betanews at CES this year. "It's very clear that the people who know it and use it love it...but at the same time, we demonstrate OneNote on the Phone, OneNote on the PC and on the Web App, and people are always like 'Why didn't I know about this!?'"
So The Office team's mission this year seems clear, to make the public aware that OneNote exists, and to convince those 78 million U.S. Office users that it's okay to just jump in and start using OneNote.
"68% of students our Office Marketing teams surveyed said their number one need is a notetaking application, but the majority of those people are using Word, and largely because they don't know or understand that OneNote exists," Fark told us.
The problem is largely that OneNote can do most everything that the individual Office applications can do on their own, but in a more open-ended fashion. Users are almost presented with too many options with how to use it and no clear definition saying "this is a task best handled by OneNote."
So iOS gives OneNote more clearly-defined usage parameters and a simple, welcoming interface. It should prove to be a good gateway for new users.
Copyright Betanews, Inc. 2010
IDC: Apple leads tablet market, Amazon e-readers

Publié: janvier 18, 2011, 7:26pm CET par Joe Wilcox

By Joe Wilcox, Betanews

Today, IDC initiated coverage of the media tablet and e-reader markets, ranking Apple and Amazon leaders in their categories, respectively. Reporting on two separate product markets in one release is unusual for IDC. But it makes sense. So-called media tablets and e-readers will likely become one category in the not-so-distant future.
What's more interesting is IDC's tablet definition. In October, I observed that if iPad counted as a personal computer, Apple would likely meet or beat top-ranked HP in Q3 US PC market share. IDC has decided iPad isn't a PC, but Tablet PC would be one.
"Media tablets are tablet form factor devices with color displays larger than 5 inches and smaller than 14 inches running lightweight operating systems (such as Apple's iOS and Google's Android OS) and can be based on either x86 or ARM processors," according to IC. "By contrast, tablet PCs run full PC operating systems and are based on x86 processors." Oh yeah? So what happens when Windows 7's successor supports ARM processors, or did IDC analysts somehow miss Microsoft's big announcement during the Consumer Electronics Show two weeks ago?
By IDC's media tablet definition, iPad had 87.4 percent global market share during third quarter 2010, based on 4.2 million units shipped. IDC predicts that media tablet shipments ended the year with 17 million units shipped. Market-leader Apple will shed some perspective on the final number when announcing holiday quarter earnings later today.
For 2011, IDC forecasts 44.6 million media tablets shipped, with the US accounting for about 40 percent of them, and 70.8 million units in 2011. "Growth in 2011 and beyond will be driven by device vendors introducing media tablets based on Android and other operating systems, as well as price and feature competition and strong demand in both the consumer and commercial segments," according to IDC. Oh? So what about the iPad dominance I keep reading about. Gasp, could Apple-hooting bloggers, journalists and Wall Street analysts be wrong?
Amazon dominated the e-reader market with 41.5 percent market share, based on 1.1 million shipments during Q3 2010. Pandigital beat out Barnes and Noble -- 16.1 percent to 15.4 percent, respectively. IDC predicts 10.8 million e-readers shipped for all 2010, with the United States accounting for 72.4 percent of the total. The analyst firm expects 14.7 million e-readers shipped this year and 16.6 million in 2012.
There remains the question of definition. I understand that analyst firms like IDC get paid for counting things and doing analysis around the numbers. The more things IDC counts, the more it can charge clients. But are all these categories really necessary when there is so much overlapping functionality, particularly among e-readers, smartphones and tablets? That's a question I pose to you. Please answer in comments.
Copyright Betanews, Inc. 2010
Sprint to charge smartphone users a $10 premium for data

Publié: janvier 18, 2011, 6:36pm CET par Ed Oswald

By Ed Oswald, Betanews

Expanding a fee already charged to those on 4G data plans, starting Jan 30 all new smartphone customers would be charged an extra $10 per month. The company says the decision reflects increased costs to provide these more bandwidth-hungry devices with data service.
The change would not affect current customers, who would be grandfathered in under their preexisting plan. In any case, Sprint's decision may also be a side effect of its push for "unlimited" plans last year.
Sprint says that on average, the smartphone customer uses ten times the amount of data as those on standard phones. However even with the charge, Sprint maintains that it is still the best value in wireless overall.
That statement would essentially be true: with the new charge, its unlimited everything plan would now cost $79.99 per month. Similar plans on T-Mobile cost $99.99 monthly, and on Verizon $119.99.
"Sprint wants its customers to experience the range of entertainment and productivity possibilities available with today's wireless technology," consumer business president Bob Johnson said in a statement. "This is responsible, sustainable and reflects our commitment to simplicity and value."
Overall among financial analysts, Sprint's price hike was well received. "Sprint has been the price leader in the market," Wells Fargo analyst Jennifer Fritzsche told BusinessWeek. "Sprint may be more confident in the pricing power it has with customers."
Another possible reason for the surcharge could be a desire by Sprint to prevent having to put bandwidth caps on its plans, and keep them truly unlimited. Verizon is currently investigating its options, while AT&T has tiered plans. T-Mobile does not currently have any caps, but has said it will throttle those who consume a large amount of bandwidth.
Copyright Betanews, Inc. 2010
Microsoft's pitch for HTML5 logo has familiar ring

Publié: janvier 18, 2011, 6:20pm CET par Joe Wilcox

By Joe Wilcox, Betanews

I'm not doing cartwheels over the new HTML5 logo, which reminds me of a superhero badge. It's bold, masculine and sort of orange, which will appeal how to the majority of web users? But the logo is a great idea, and it's big splash promotion -- some of that from Microsoft -- is exactly what the standard-in-progress needs right now.
Today in a blog post, Jean Paoli, Microsoft's general manager of interoperability, writes: "The logo links back to W3C, the place for authoritative information on HTML5, including specs and test cases. It's time to tell the world that HTML5 is ready to be adopted."
There's a strange appropriateness to Microsoft promoting the logo's use. It's what the company did in the late 1990s to promote Internet Explorer. During the so-called browser wars between Microsoft and Netscape, each side adopted proprietary tags not necessarily supported in the other's browser. Microsoft encouraged websites supporting Internet Explorer to put up an IE logo/badge -- to be proud, to proclaim their support. As a marketing mechanism, the logo branding was brilliant and quite uncommon.
I remember interviewing Sun cofounder and then chief executive Scott McNealy in his office about Java; some time in 1997. McNealy, an avid amateur hockey player, limped from an injury on the ice from the night before. I scolded McNealy, calling him a boy who cried wolf, for making promise after promise after promise about Java -- like powering light switches -- that never came to be. He didn't get upset at that but my accusations about Java branding. I observed that Internet Explorer logos were on tens of thousands of websites, while Java was seemingly nowhere. If developers are using Java, why are they keeping a secret, I accused. McNealy responded by pointing across the room at his Java terminal and the tiny logo on the side. He blamed his marketers for not listening.
Someone listened, or observed -- that is Microsoft's browser, and the logo program was one reason. The US Justice Department painted a black-and-white case about Microsoft triumphing over Netscape during the browser wars. Simply stated: Microsoft abused its monopoly position in desktop operating systems to gain dominance in the adjacent browser market. I don't agree with that simplistic portrayal. Microsoft's success was about more than integrating the browser into the operating system. Microsoft also made huge investments in developer programs and branding and marketing efforts. The logo program was among them.
I'm not asserting that developers and downloaders adopted IE over Netscape simply because of a logo program. That said, no one should misunderstand the influence a well-placed logo can have. Take for example TV networks, which not long after the browser wars, started putting their logos in the lower right-hand side of the screen. It's about brand recognition and in some ways territory marking -- the network asserting: "This is my content."
On the web, the logo means something more. If the popular sites support Internet Explorer there must be a reason for that. People take social cues from one another all the time, about the clothes other people where, the cars they drive, the jewelry they wear and in the 2010s which smartphones they carry (and what apps are on them). In the late 1990s, pervasive IE logos indicated that Internet Explorer was the happening browser -- to developers and web surfers.
The HTML5 logo is even more significant, and its usage communicates that the standard is ready enough to adopt. More web developers will support HTML5 as they see others doing so. Microsoft's support communicates something, too. Right now, IE has a reputation for being a non-standards browser, mainly because of persistent IE6 usage and the still-supported ActiveX plug-in architecture. Large businesses are among the biggest consumers of ActiveX, which holds back the browser's future development (backwards compatibility is a Microsoft customer priority). Microsoft's loud support for HTML5 and now its logo communicates to legacy customers and developers that the future is something else. It's one thing for Google to call for HTML5 support, and something all together different for Microsoft -- the company with the perpetual Internet Explorer standards non-compliance black eye -- to do so.
The logo is important, as is Microsoft's promoting it. Paoli and I agree. He writes: "As developer and site owners see this logo across the web, we hope it will signal that while there is still a lot of work to do until all the HTML5 technologies are ready, real sites are starting to take advantage of them today."
There remains one question. What's your reaction to the HTML5 logo? OK another: Will you mark you territory with the HTML5 logo? Please answer in comments.
Copyright Betanews, Inc. 2010
Apple's future without Steve Jobs won't be as bright

Publié: janvier 18, 2011, 8:00am CET par Joe Wilcox

By Joe Wilcox, Betanews

Today is an important, perhaps defining, day for Apple. As US stock markets open, investors will give their vote of confidence about the company's future. Yesterday, in a stunning and unexpected announcement, Apple CEO Steve Jobs took another medical leave, but this time with no set time period like the last one. "When, or perhaps that should be if ever, will Jobs return and what does it mean for Apple?" is question of the day. Later, after the stock market closes, Apple plans to announce holiday quarter earnings results.
"Strange they left it until a day that the stock markets are closed," observed Betanews reader Brian Butterworth. Commenter rrode74 made similar observation: I have zero doubt Apple announced this [yesterday] when US markets are closed. Apple manipulates even when Steve's health hangs in the balance. With the stock having climbed so high so fast, even with Steve it will hit a peak and come down. This could bring it down much faster." Apple opened at $327.05, or about 5 percent off the previous close.
Fast-flying Apple
How has the stock "climbed so high so fast?" Jobs took his last medical leave two years ago this month. Apple shares traded for $82.33 on Jan. 16, 2009 and closed on Jan. 14, 2011 at a 52-week high of $348.48. While markets were closed yesterday in the United States for the Martin Luther King Jr. birthday holiday, they were open in Europe. Apple shares fell nearly 10 percent on the Frankfurt exchange before closing down by more than 6 percent. Will US investors similarly respond, or will a day to think things over and the promise of strong holiday quarterly sales mollify their worries?
To gage the mood in one part of techdom, yesterday I asked Betanews readers: "What future does Apple have without Steve Jobs?" "I am under the impression that Jobs proverbially rubs every new device with a diaper before it goes out the shop doors," Daniel Fletcher expressed by e-mail. "If this is true, what will happen to new Apple products -- or at least how much will his absence affect peoples' psychological perception of each Apple product having personally received 'the Master's touch?'"
"No one person comes up with all the great ideas at Apple, but someone has to decide which ones to green light," Lee Meade wrote in comments. "And that's what Jobs has done at Apple on a level unparalleled anywhere. Can't see Apple continuing this amazing run of product successes without Jobs around to make those final calls."
Betanews reader Kevin Baron sees a powerful team capable of going on without the cofounder and iconic visionary: "Jobs if anything has whipped into shape a very amazing creative team, which he should be given credit for. There is a lot of great talent at Apple that understands Apple and knows how to make great products. Apple will go on just fine without Jobs. And that's a credit to Steve Jobs leadership for many years. Having said that I wish him luck and good health."
Matt Shulman agreed. "Steve Jobs turned Apple around and was a huge part in where it is today. At this point though, is he the sole person behind all their new ideas? I tend to think he's not and that with the success they've had, it shouldn't be too hard for them to keep going without him when needed. Even with Steve Jobs at the helm, I think they are going to be facing far more competition than they have in the next couple of years."
Steve Jobs' Return from Exile
How big was the turnaround? In 1996, Apple was near financial collapse. The company's failure to timely release a new operating system and Microsoft's huge Windows 1995 success exacerbated existing structural problems. Then, right near year's end, Apple unexpectedly bought Jobs' NeXT Computer company, bringing back a cofounder ousted during a 1985 boardroom coup. By summer 1997, Jobs had assumed interim CEO status (he also was Pixar's chief executive), obtained a $150-million Microsoft investment as part of an intellectual property settlement and secured a five-year Macintosh Office development commitment. The following year, Apple released the trendy translucent iMac and showed a promising rebound until summer 2000, when the recession smacked most tech companies. Apple shares collapsed.
Meanwhile, Apple pushed ahead with investments, with four in 2001 that would be foundational for major products available today. They were, in order of 2001 launch: iTunes, Mac OS X, Apple retail stores and iPod. Still, eight years ago, Apple shares traded in the doldrums. On Jan. 7, 2003, when Merrill Lynch recommend "sell" on Apple, shares traded for $14.85. Today, Apple's market capitalization is second only to Exxon and the company has more than $50 billion in the bank. If Jobs doesn't return, he will leave behind a company on solid footing by most every measure but one: Perception. Fickle investors could look at current solid financials and product pipeline and not worry, or they could run from the stock for fear of the future. As I've stated so many times, in business perception is everything.
"It's debatable whether or not Steve Jobs is personally involved in so many minute details of Apple product design and strategy," writes Betanews reader Greg Glockner. "However, it's widely believed that he does, and Apple has done little to dispel this theory."
There it is, the perception problem -- that Apple and Jobs are one. Rene Gutierrez observes that Jobs' last medial leave was but six months and the product pipeline by no means dried up: "The crucial question here is not whether Apple can survive a six-month sabbatical, but whether they can survive without him at the helm, period."
Readers Express Their Fears
For Gutierrez it is the distant and not the recent past that is foreboding: "Remember what happened to Apple when he left for good back in the 80s? While he may not be involved in every detail of his company, he is still the person who oversees the most important projects, rallies the troops, creates the 'whiz bang' aura with consumers and serves as the visionary for the company. That is something you can't substitute just with anyone. Just ask Microsoft what life has been like without Bill [Gates]."
"The departure announcement 'I'm going but I'm still going to be involved' suggests that Apple knows a lot of the share price is the Jobs-distortion-field, or perhaps sadly that Jobs in reality has entered a terminal disease phase," Butterworth commented. "If Jobs really just wanted to have some time off, Apple would have announced this on a 'normal day'; this way looks very suspect. A company the size and value of Apple should have more than one star. The impression is always that the company is the star, and if the star fades, so does shareholder value."
Brian Kramer also is concerned and wonders what investors will do: "I think the market's reaction to a leave of absence, and leaving the company are going to be two very different things. Steve leaving the company could have not only a devastating effect on the stock price, but also product development past the 1-2 years already laid out."
Douglas Utley shared a sentiment similar to what I read several places yesterday: "This just goes to show no matter how much money Steve has or how much better he thinks he is than everyone else, in the end some of the poorest of the poor have something much more valuable than Steve Jobs will ever be able to obtain again: Health."
Whatever happens today or the months ahead, I want to close by wishing my best to Steve Jobs and his family. Anyone want to sign a giant get well card?
Copyright Betanews, Inc. 2010
À la carte cable programming comes to Roku for the first time

Publié: janvier 18, 2011, 2:14am CET par Tim Conneally

By Tim Conneally, Betanews

Roku's streaming set-top box has been an unequivocal success for the "over the top" content industry, bringing streaming video on demand to millions of homes. Today, Roku announced it has gotten its first "port" of a cable channel in its channel store: WealthTV.
When I say "port," I mean users who tune into the WealthTV channel on their Roku set top box will see the same thing that WealthTV is broadcasting to its cable partners.
Now, irrespective of their Internet provider, users will be able to add WealthTV for $2.99 per month.
"Fans that can't get our network from their local video provider can now enjoy our…programming lineup via Roku," said Robert Herring, Sr., founder and CEO of WealthTV. "We've received a large volume of consumer requests to expand our distribution to connected devices, and this deployment will let us gauge the acceptability and viability of alternative distribution methods for our traditional cable feed."
Whether or not you are interested in the content, it is a true example of a la carte linear programming, something that has thus far been frowned upon by the National Cable and Telecommunications Association, and one of the great possibilities offered by over-the-top content distribution.
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