CapMac iPhone SIG

For the second time in a month, the Apple stores will be the focus of a major Apple product debut, when the cellular-capable iPad Wi-Fi + 3G first goes on sale today at 5:00 pm. Apple Barton Creek and Apple Domain will close their doors at 4:00pm to prepare – and reopen an hour later.

Like the previous Wi-Fi version of the iPad that was introduced on April 3rd, Apple said the stores will offer iPad buyers at the stores “a free Personal Setup service,” including personalizing the device with e-mail setup and loading favorite applications. Selected stores have been offering free iPad instruction: a 45-minute “iPad Tour” class and a one-hour “Meet Your New iPad” class.

iPad will be the focus of next month’s iPhone/iPad meetup.

The iPhone is a revolutionary handset. But it is also the key to a virtual gold mine — the iTunes App Store, where independent developers can become multimillionaires in just months.

‘Want to Build an App?’ will be a free special event for those interested in learning how turn an idea into an app on iTunes – ready for purchase by iPhone, iPad, or iPod Touch users.

The event will be held at Sherlock’s Baker Street Pub on Monday, May 3rd from 7 − 9 PM.  Sherlock’s is located at 9012 Research Blvd; Austin TX 78758, near Burnet Road.

West Decker, President of Smart Puppy Software, an Austin based development company focused on application development for iPhone OS, will share his experiences, and take those attending through the steps necessary to create apps, and successfully market them.

West’s professional background makes him ideal to lead this CapMac Special Event:

West Decker is President of Smart Puppy Software, an Austin based development company focused on application development for iPhone OS.  Most recently, West was Vice President of Apperian, Inc.’s Engineering and Professional Service groups.  While at Apperian, West spearheaded development of iPhone applications for large customers including American Greetings, DuPont, Newsday, Texterity, and Progressive Insurance. Prior to joining Apperian, West spent 10 years of his career at Apple, Inc. where he worked with Apple’s largest Enterprise, Government, and Creative companies in the U.S. and abroad. His technical background and dedication to customers propelled him into a leadership role as Sr. Manager of Apple’s Enterprise Professional Services division.

The Capital Macintosh Users Group [www.capmac.org] is sponsoring the session as a community service – to encourage local developers and tech-geeks to consider this exciting, new platform.

Anyone may attend, and like all CapMac events – there is no charge.

Apple [AAPL] today surpassed Microsoft [MSFT] to become the second largest company in the US, in terms of market capitalization, now trailing only Exxon [XOM] – according to Standard & Poor’s Index Services Unit.

The S&P 500 is float-adjusted, so it doesn’t use the full market basis for Microsoft. Apple’s float-adjusted market cap reached $241.5 billion, surpassing Microsoft Corp.’s index market value of $239.5 billion, according to Standard & Poor’s.

For those confused about the conflicting market values for Microsoft:

The S&P index is calculated using the “Free-float Market Capitalization” methodology. Instead of using a company’s outstanding shares it uses its float – or shares that are readily available for trading. All major index providers like MSCI, FTSE, STOXX, S&P and Dow Jones use the free-float methodology.

In the two and and a half months since Thursday February 4th, 2010, when it was trading at $192.05 a share – Apple stock has risen 74.4 points or almost 39% to about $266.47 as of market close Thursday.

Apple [AAPL] today announced financial results for their second fiscal quarter of 2010 – blowing away even the most optimistic analyst forecasts. For the quarter, Apple posted revenue of $13.50 billion and net quarterly profit of $3.07 billion, or $3.33 per diluted share, compared to revenue of $9.08 billion and net quarterly profit of $1.62 billion, or $1.79 per diluted share, in the year-ago quarter.

Gross margin was 41.7 percent, compared to 39.9 percent in the year-ago quarter. International sales accounted for 58 percent of the quarter’s revenue.

The numbers represent the best non-holiday quarterly revenue and earnings in Apple history.

Apple shipped 2.94 million Macintosh computers during the quarter, a unit increase of 33 percent over the year-ago quarter. Quarterly iPhone unit sales reached 8.75 million, up 131 percent from the year-ago quarter, and the company also sold 10.89 million iPods during the quarter, representing 1 percent unit decline over the year-ago quarter.

“We’re thrilled to report our best non-holiday quarter ever, with revenues up 49 percent and profits up 90 percent,” said Steve Jobs, Apple’s CEO. “We’ve launched our revolutionary new iPad and users are loving it, and we have several more extraordinary products in the pipeline for this year.”

Apple’s guidance for the third quarter of fiscal 2010 expects revenue of $13.0 billion to $13.4 billion, and earnings per diluted share of $2.28 to $2.39, according to Apple’s CFO Peter Oppenheimer.

Financial Call Highlights –

• While PC industry as whole grew 24% year-over-year –  Mac grew 33%.
• iTunes Store brought in $1.1 billion, with over 4 billion App Store downloads so far, iPad app sales strong
• iPod results – iPod touch grew 63% year-over-year, with iPod revenue up 12%. Apple holds over 70% share of MP3 player market.
• ‘Thrilled’ with iPhone sales – 8.75 million is most ever. Growing at three times the overall market rate.
• AT&T continues to address network issues in many areas, with satisfactory progress
• ‘Very happy’ with iPad sales so far. 3G on track for April 30th in US. Nine more countries coming late May.
• Retail store sales up 22%, and 50% of retail store Mac purchasers continue to be new to Mac.
• Market in China holds huge potential – sales doubled this quarter alone.
• Apple on track to open 40-50 new stores this fiscal year.
• Several new ‘extraordinary’ products in pipeline for later this year.

A QuickTime® stream of the Apple Financial Call will be available for two weeks starting tonight on the Apple website.

It’s sad to watch a normally-respected industry source became a thieving ‘click whore’, offering rewards for what they know is illegal access to property protected as a trade secret and secured by uber-tight non-disclosure agreements [NDA's].  Evidently, Gizmodo has taken that path – almost proudly unapologetic.

The web is afire today with details and photos purported to be a prototype of Apple’s upcoming fourth-generation iPhone. Photos and technical details are drawing rabid viewership – with Gizmodo and other websites carrying the information scoring millions of clicks – which equate to real dollars in compensation from their advertisers.  That is wrong.

Whether the the prototype is real or a fabrication is immaterial. The appropriation of property belonging lawfully to another, especially when it is a protected Trade Secret is wrong – as Gizmodo well knows.

Where is the outrage for those who would divulge Apple trade secrets?  Everyone loves a good rumor.  But this isn’t a rumor, it’s the willing appropriation of another’s property, and reportedly paying a bounty for access.  The base motivation is pure greed.

Any Apple fan who willingly releases trade secrets or prototypes – and anyone who propagates those details – is an enemy of Apple enthusiasts everywhere – damaging Apple product development, launch, and marketing plans.

Anyone who signs an NDA does so willingly, with the intention of honoring the implied and legal trust of confidentiality. That oath is isn’t just legal mumbo-jumbo, it’s a necessary part of developing and marketing insanely great products. To ignore that is an ethical breach worthy of junk-bond hucksters.

Gizmodo and others used to be better than that.

So much news — so little connectivity.

Special thanks to Nancy, Jim, June, Isaac, Greg, Mason and son for making last nights SIG a success.

Next month we’ll be talking iPad and some amazing things we’ve seen that will be taking the iPad to whole new levels.

Also some rare insights from a long visit with an Alcatel-Lucent engineer about iPhones, iPads and 4G. WOW.

ATT service here bites. Almost no connectivity at convention center or hotels, even standing under a cell tower.

Much more as we get back to south Austin’s poor — but somehow faster service. Arrrrg.

It seems like everyone owns an iPhone. As I waited this morning for my Southwest Airlines flight to NAB — I couldn’t help but notice iPhones amazing demographics.

iPhone’s appeal is seemingly universal. It’s become the roadwarrior’s digital Swiss Army knife. For some it’s games, others read books or news, others check stocks, weather, watch movies, listen to music, or book tickets to shows, while others read email and chat.

That’s the beauty of the beast. One size fits all. Well, almost — now with iPad, we gain gain even more space to play, create and learn. Each in our own way.

TripIt informs me it’s time to board. For the next few days I’ll be at NAB reporting the latest iPhone and iPad news.

Check back often — it should be an amazing week for Apple news.

How can AT&T be so clueless?  Widely known for their poor coverage, failed networks, dropped calls, data outages, and whole cities with less than third-world connectivity – now, instead of improving what ills their customers – AT&T has embarked on a new rebranding effort as a ‘lifestyle company’.  Condom jokes aside, where did they come up with that?  Their new slogan is ‘Rethink Possible’.

Esther Lee, senior vice president for brand marketing and advertising for AT&T, told The New York Times that the spirit of “Rethink Possible” is “so much in keeping with what an innovative company like AT&T embodies.” David Lubars, chairman and chief creative officer for ad agency BBDO North America told the Times that “Rethink Possible” moves AT&T “out of the gloom” and props it as a “forward-thinking, optimistic company.”

They’re not only rearranging deck chairs on the Titanic – but re-painting them as well.

A PC World columnist put it best:

“Rethink Possible” sounds to me like a dying-breath attempt at restructuring a company that many deem broken trash. If Verizon and its beefy 3G network get an iPhone, AT&T is in serious trouble. I for one will immediately bail on my AT&T contract, termination fees be damned, and I suspect many others will do the same.

Worthy of note – AT&T [T] closed today $26.44 as its chart continues to look like a dying man’s blood pressure, Apple [AAPL] closed at $241.79, as it continues it’s meteoric rise.

Apple’s adoption of HTML5’s open technology is evidently hitting raw nerves at Adobe.  Hard-pressed to counter any of Apple’s reasoning for adopting the open world standard, Adobe Platform Evangelist Lee Brimelow did the next best thing – he angrily denounced Apple.

Brimelow held little back, lambasting the company for trying to exert a “tyrannical control over developers…more importantly, wanting to use developers as pawns in their crusade against Adobe.” He says any real developer could not support Apple’s moves in “good conscience.”

“Personally I will not be giving Apple another cent of my money until there is a leadership change over there. I’ve already moved most of my book, music, and video purchases to Amazon and I will continue to look elsewhere.”

While some have criticized Apple for not including support for Adobe’s proprietary Flash format in the iPhone and iPad – many others have supported Apple’s move toward more open standards like HTML5, H.264, and CalDAV, and WebDAV, moving away from closed standards which must be licensed – at a price.

Without that Flash revenue stream from developers and users – Adobe sees the clunky animation on the wall – lower profits and adoption of technology they don’t control.

TechCrunch offers a fair and complete coverage of Mr. Brimelow’s remarks.

Still feel that Apple needs Flash?

Daniel Eran Dilger, tech guru, author, and proprietor of Roughly Drafted, presents a superb analysis of the ‘Fallacy of Flash‘. I highly recommend Daniel’s honest, straight-talking analysis of one of the misunderstood and oft-debated issues facing Apple users today.