Apple CEO announced that Apple TV sales have now surpassed 20 million during today's Q2 2014 earnings call. As such, the company recently stopped referring to the Apple TV business as a "hobby," as it's done for the past seven years or so.
"I'm feeling good about this business and where it could go," Tim Cook said, further revealing that the company stopped calling the product segment a hobby once it pulled in $1 billion in revenue in 2013. "it didn’t feel right to me to refer to something that brought in a billion dollars as a 'hobby,'"
Now, the Apple TV is an "area of intense interest"--no longer a hobby, indeed. The last major Apple TV hardware release came in 2012. Since then, the company has added many new channels of content over time. Rumors continue to persist that Apple will release a new Apple TV set-top box with expanded functionality, while others say that the company is set to reveal a full-on 4K Ultra High Definition television set of its own.
You can pick up the current Apple TV at a discount on Amazon.
During today's Apple earnings call, CEO Tim Cook announced that 62% of current iPhone 4S buyers, and 60% of current iPhone 5c buyers are switching over from Android devices. The iPhone 4s is currently free with two-year contract, while the iPhone 5c is $99 (sometimes less) with the same term agreement (see our iPhone 5c review.) These numbers bring new light to the question that many ask, wondering why Apple keeps the iPhone 4s around, or why it made the iPhone 5c in the first place. They provide an inexpensive entry point with powerful hardware for users who just want to get started in the iOS ecosystem, without having to spend on a higher-priced flagship Apple device. By that tune, it would appear that the iPhone 5c is a success after all.
Today, Apple announced its second quarter earnings results, with revenue at $45.6 billion, beating the guidance of $42-44 billion that it previously gave, while also soundly beating analyst estimates.
How did Apple make that money? Mostly on the back of the iPhone. Device sales for Q2 2014 include 43.7 million iPhones sold, 16.3 million iPads, 3 million iPods, and 4.1 million Macs. In the same quarter last year, the iPhone sold 37.4 million, iPad 19.5 million, iPod 5.6 million, and Mac 3.9 million. The company also announced that Apple TV sales has now surpassed 20 million.
Apple isn't done yet. During today's earning call, CEO Tim Cook reiterated that Apple has new hardware categories that it's excited to reveal here in 2014. Time will tell if they'll be big enough to garner their own bulletpoint in the quarterly results in the future.
I was talking with my pal Dave Scherer from PWInsider today about Apple's performance, and he seems convinced that AAPL is no longer a good buy as far as stock is concerned. He basically believes that due to lower cost competition, Apple's higher-priced items won't sell as well, and that's why the stock was down after the earnings report. Of course, while I am no stock market expert, I definitely have an alternate view on how Apple will perform. My viewpoint, after the break.
Former Microsoft CEO, current mosquito-wrangler and public donator of his vast wealth, Bill Gates, was talking on CNBC about how he feels iPad users are frustrated about not having a physical keyboard and the lack of Microsoft Office. Curious among many where he is getting his data. Bill didn't waste any time proposing the Microsoft Surface tablet, which has Microsoft Office, as a better alternative, despite sales indicating the contrary. Perhaps, it might behoove Microsoft to go to its roots and start selling software instead of trying to sell an ecosystem. After all, we're in the 'Post PC-era' as coined by the late Steve Jobs. On the other hand, Bill is saying tablets are growing in popularity, and that, eventually, they'll be hard to distinguish between them and PCs. Catch the video after the break.
"With Windows 8, Microsoft is trying to gain share in what has been dominated by the iPad type device. A lot of those users are frustrated. They can't type. They can't create documents. They don't have Office there. So we're providing them something with the benefits they've seen that have made that a big category but without giving up what they expect in a PC." - Bill Gates
We could be wrong, but today's Apple Q1 2012 earnings call may have been the first time that the company has revealed any tangible sales figures for the Apple TV. According to CEO Tim Cook, Apple sold a record-breaking 1.4 million Apple TV units last quarter, which is exactly half of the 2.8 million units that it sold in the entire prior fiscal year. As expected, Cook wouldn't comment on the rumors of the imminent release of a bona fide Apple TV set. We're sure it's in the pipeline, but don't expect Apple to say anything on the record until it's ready to be shown off to the world.
During its Q1 2012 earnings call where Apple announced a record-breaking holiday quarter, CEO Tim Cook also announced that there are now 85 million iCloud accounts. What's impressive there is that iCloud is just three months old, coming in as a replacement for the aging MobileMe, so that's a tremendously positive number as it pertains to user adoption. In fact, that 85 million number is 50 million more than iPhone 4S units sold.
Apple has had an amazing Q1 2012 holiday quarter, breaking all sorts of records. Alongside selling over 37 million iPhones, iPad growth continues to climb. In fact, over the holiday quarter Apple sold over 15 million iPads, which is a 111% increase over the same quarter the year before. Anyone who thought that the Kindle Fire was gonna slow down the iPad juggernaut were simply incorrect.
As we'd mentioned a few minutes ago, Apple has set company records in Q1 2012 for net income ($13.06 billion) and revenue ($46.33 billion.) The company owes a large bit of thanks for that milestone to the iPhone. To put it into perspective, Apple sold as many iPhones in the holiday quarter as there are people in the state of California. That is twice as many iPhones as the company sold in the same quarter the year before, and of course, sales were led by the iPhone 4S, but the company did note that sales of the $99 iPhone 4 and the free iPhone 3GS certainly helped hit that 37 million number.
This afternoon, Apple announced that it has posted a record-breaking holiday quarter for fiscal Q1 2012, led by massive sales of iPhone, iPad, and Mac computers. In a nutshell, the company made a ton of cash, selling over 37 million iPhones, 15,430,000 iPads, 5,200,000 Macs, and 15,400,000 iPods. Full release after the jump.