Apple CEO Tim Cook has asked for a 40% pay cut, a reflection of feedback from the company’s shareholder meeting.
Cook received $98 million in compensation in 2021, compensation that was supported by 94.9 percent of shareholders. According to 9to5Mac, the most recent shareholder vote saw only 64% of shareholders vote for Cook’s compensation to remain the same.
As a result of the vote, Cook asked the Compensation Committee to reduce his pay. The change was outlined in the company’s annual proxy statement:
Mr. Cook’s 2023 target total compensation is $49 million, a reduction of over 40% from his 2022 target total compensation. Taking into consideration Apple’s comparative size, scope, and performance, the Compensation Committee also intends to position Mr. Cook’s annual target compensation between the 80th and 90th percentiles relative to our primary peer group for future years.
Apple CEO Tim Cook has reportedly said the company will purchase chips from a plant in Arizona, a major step toward supply chain diversification.
Apple relies on TSMC exclusively for the manufacture of its custom silicon. While Apple has relied on TSMC for its iPhone and iPad chips for years, the company announced its plans to transition its entire Mac lineup to its own custom silicon, chips TSMC continues to manufacture.
According to Bloomberg, Cook has said Apple will source chips from TSMC’s new factory:
“We’ve already made a decision to be buying out of a plant in Arizona, and this plant in Arizona starts up in ’24, so we’ve got about two years ahead of us on that one, maybe a little less,” Cook said.
Given the importance of TSMC’s role in Apple’s products, it’s not surprising Apple would be moving to source chips from the US plant. Taiwan is in a precarious position, with the threat of invasion by China.
Apple is not the only company looking to diversify its supply lines away from Taiwan. MediaTek recently signaled it would be open to moving some manufacturing away from the island.
Apple seems largely unconcerned with the blue vs green bubble debate, with Cook saying the solution is to buy an iPhone.
When texting a non-iPhone user, Apple’s iOS falls back to the older, more limited SMS texting protocol instead of using the newer RCS and indicates the switch by displaying the texts in green bubbles instead of the standard blue. RCS offers many of the same advantages as Apple’s iMessage, such as group administration, read receipts, file transfer, encryption, and more. Google and others have called on Apple to adopt RCS for iPhone to Android communication, but Apple CEO Tim Cook just threw cold water on that idea.
According to The Verge, Cook was asked how Steve Jobs would have felt about RCS at Vox Media’s Code 2022 event.
“I don’t hear our users asking that we put a lot of energy in on that at this point,” Cook responded.
When the person who asked the question, Vox Media’s LiQuan Hunt, pointed out the problems sharing videos with his mom, who uses an Android phone, Cook had a curt response:
“Buy your mom an iPhone,” he said.
Hunt’s complaint highlights the heart of the issue: Apple is intentionally using an inferior protocol to communicate with Android devices, one that degrades video quality, limits file transfer, and provides no security or encryption.
Google has called on Apple to fix texting by adopting RCS, pointing out that it will not impact communication between Apple devices. It will only improve communication between Apple and non-Apple devices. Many in the industry, including we at WPN, have made the case that Apple only refuses to support RCS as a way to discourage people from buying Android phones in favor of its iPhones.
Perhaps Cook should look at Steve Jobs’ efforts to work with Microsoft as an indication of how he would think of RCS. Rather than focus on old turf wars between the two companies, Jobs was more concerned about what was in the best interest of his customers.
In the meantime, thank you, Tim Cook, for saying out loud what everyone already suspected.
Apple employees are once again pushing back against the company’s return-to-office plans (RTO).
Apple notified employees in mid-August that they would be required to work from the office at least three days a week, starting September 5. Employees are pushing back, demanding more flexibility than Apple wants to give.
Tim Cook has made no secret of his belief in in-person collaboration, but according to Engadget, employee group Apple Together says the reality doesn’t match up with Cook’s idealized concept. Instead, the company’s secrecy makes collaborative inspiration too difficult to be practical. As a result, the group argues, employees should at least be given a work environment that results in improved well-being and happiness.
This isn’t the first time employees have pushed back against the company’s RTO plans. In fact, employees have penned several open letters to management demanding the flexibility to continue working remotely.
One such letter even included the following ultimatum:
“Stop treating us like school kids who need to be told when to be where and what homework to do.”
“Here we are, the smart people that you hired, and we are telling you what to do: Please get out of our way, there is no one-size-fits-all solution, let us decide how we work best, and let us do the best work of our lives.”
Evidently, Apple has already made at least one concession with its latest plans. Originally, the company wanted employees in the office Monday, Tuesday, and Thursday but dropped Monday as a pre-defined office day as a result of the pushback. Instead, it is defining Tuesdays and Thursdays as in-office days, with the third left up to each team.
It remains to be seen if Apple will budge any more or if it will take a hard line on its latest plans. Given that its RTO plans have already cost the company its head of AI, there may be additional concessions in the future if the pushback grows.
FCC Commission Brendan Carr has penned a letter to Apple CEO Tim Cook and Google CEO Sundar Pichai asking them to ban TikTok.
TikTok is once again in hot water following leaked audio recordings that show its employees in China have full access to data for US users, something the company has repeatedly denied. In the wake of the revelations, Commissioner Carr is calling for action, going so far as to insinuate the platform is a wolf in sheep’s clothing.
TikTok is not just another video app. That’s the sheep’s clothing.
It harvests swaths of sensitive data that new reports show are being accessed in Beijing.
Commissioner Carr then goes on to highlight the company’s “pattern of misrepresentations” that have led to bipartisan concern and bans by the US military. He also points out that it “collects search and browsing histories, keystroke patterns, biometric identifiers, draft messages and metadata, plus it has collected the text, images, and videos that are stored on a device’s clipboard.”
TikTok has gone to great lengths to distance itself from the privacy scandals it has had, scandals which Commissioner Carr points out one by one.
At one point, a company executive even went so far as to provide sworn testimony before Congress that US data was handled by a “world-renowned, US-based security team.” The leaked audio recordings painted a far different picture, showing that the “world-renowned” US team didn’t have the ability or permission to handle US data without involving their colleagues in China.
It’s truly amazing how often TikTok has broken its promises and run afoul of privacy rules and regulations. If Commission Carr has his way, TikTok may finally pay the price.
Tim Cook has set the record straight that Apple is not against digital advertising, it simply wants to give consumers more control.
Apple is at odds with the advertising industry over changes to iOS. Apple recently began enforcing privacy labels, forcing app developers to disclose what user information they collect and track. iOS will soon include App Track Transparency (ATT), forcing apps to ask users for permission to track them.
Unfortunately, the advertising industry seems to suffer the belief that it has an inalienable right to track users, and build detailed profiles of them, with or without their permission. Thankfully, Apple is opposed to that view, and holds to the idea that people should be able to decide for themselves whether they are tracked and profiled — not the have the decision made for them by advertisers.
In an interview with the Toronto Sun, via AppleInsider, CEO Tim Cook clarified the company’s stand.
“We’re not against digital advertising,” Cook said. “I think digital advertising is going to thrive in any situation, because more and more time is spent online, less and less is spent on linear TV. And digital advertising will do well in any situation. The question is, do we allow the building of this detailed profile to exist without your consent?”
Cook framed Apple’s actions in the context of protecting its users.
“We feel so much that it’s our responsibility to help our users be able to make this decision. We’re not going to make the decision for them. Because it’s not our decision either. It should be each of ours’ as to what happens with our data. Who has it and how they use it,” Cook continued.
Cook also addressed why companies like Facebook and Procter & Gamble are so opposed to Apple’s efforts. P&G has even gone so far as to work with a Chinese ad agency to find ways of bypassing ATT.
According to Cook, these companies are only concerned because they’re facing a reality where they may not have access to the same amount of data as before, and they would only lose that access if customers choose not to give it to them. Rather than accept that change, their approach is: “You don’t want to give us access to all your data, so we’re going to try to find ways around your choice and collect your data anyway.”
Regardless of whether you’re an Apple or Android user, Apple’s stance on privacy is a refreshing one — one where the customer comes first.
At Apple’s Peak Performance event, CEO Tim Cook took the wraps off the iPhone 13 SE, following months of rumors and anticipation.
The new iPhone 13 SE will be powered by the same A15 Bionic chip as the rest of the iPhone 13 line, making it up to 1.8x faster than the iPhone 8. Apple’s Francesca Sweet also pointed out the A15 Bionic is faster than anything in the Android ecosystem.
The new phone features the same aluminum and glass design, including the same glass as in the iPhone 13 and 13 Pro. Sweet says its the strongest glass in any iPhone. The new model comes Midnight, Starlight, and Product Red colors.
As predicted, the new model features 5G, but is significantly more expensive than some had projected. Some analysts thought Apple may introduce the iPhone 13 SE with a starting price of $199. Unfortunately, the starting price point is $449.
Apple has joined other companies in imposing its own sanctions against Russia in response to its invasion of Ukraine.
The international community is largely relying on sanctions and economic measures to force Russia to end its invasion. Many companies have suspended business with Russia and Russian-owned businesses, and Apple now joins those ranks.
In an email seen by MacRumors, CEO Tim Cooks explained the company’s stance:
We have taken a number of actions in response to the invasion. We have paused all product sales in Russia. Last week, we stopped all exports into our sales channel in the country. Apple Pay and other services have been limited. RT News and Sputnik News are no longer available for download from the App Store outside Russia. And we have disabled both traffic and live incidents in Apple Maps in Ukraine as a safety and precautionary measure for Ukrainian citizens. We will continue to evaluate the situation and are in communication with the relevant governments on the actions we are taking. We join all those around the world who are calling for peace.
Pausing traffic and live incidents in Maps is similar to action Google took. In both cases, the companies are likely concerned Russian forces could use the software to pinpoint Ukrainian troop movements or fleeing refugees.
Cook also highlighted how Apple employees can donate to humanitarian efforts:
Apple is donating to humanitarian relief efforts and providing aid for the unfolding refugee crisis. We are also working with partners to assess what more we can do. I know that many of you are eager to find ways to support as well, and we want to help amplify the impact of your donations. Starting today, Apple will match your donations at a rate of 2:1 for eligible organizations, and we will make this retroactive for donations to those organizations since February 25. Please visit the Employee Giving Portal to learn more.
Even without a military response to Russia’s invasion, the cost is continuing to add up and may soon reach an untenable level.
Apple has announced its fourth quarter results, ending September 2021, and the company posted record revenue for the quarter.
Apple posted revenue of $83.4 billion, an increase of 29% year over year. Earnings per share came in at $1.24, just slightly higher than the $1.23 Wall Street was expecting. Despite the record revenue, it came in a bit under the $84.67 billion analyst were hoping for.
The companies results were driven by a combination of the M1 Macs, as well as the iPhone 13.
“This year we launched our most powerful products ever, from M1-powered Macs to an iPhone 13 lineup that is setting a new standard for performance and empowering our customers to create and connect in new ways,” said Tim Cook, Apple’s CEO. “We are infusing our values into everything we make — moving closer to our 2030 goal of being carbon neutral up and down our supply chain and across the lifecycle of our products, and ever advancing our mission to build a more equitable future.”
“Our record September quarter results capped off a remarkable fiscal year of strong double-digit growth, during which we set new revenue records in all of our geographic segments and product categories in spite of continued uncertainty in the macro environment,” said Luca Maestri, Apple’s CFO. “The combination of our record sales performance, unmatched customer loyalty, and strength of our ecosystem drove our active installed base of devices to a new all-time high. During the September quarter, we returned over $24 billion to our shareholders, as we continue to make progress toward our goal of reaching a net cash neutral position over time.”
Following a record-breaking quarter, Apple CEO Tim Cook says 5G rollout still has a long way to go and will continue to drive iPhone sales.
The iPhone 12 was the first model to support 5G. Wireless carriers around the world are racing to deploy the next generation of wireless technology, although different countries and carriers are proceeding at drastically different paces.
A key element of Apple’s success this last quarter was a 50% growth in iPhone sales, long-considered Apple’s biggest cash cow. Cook doesn’t see that changing for some time, as 5G’s relative infancy still leaves plenty of room for growth.
“We’re in the very early innings of 5G,” Cook said during Apple’s earnings call, according to AppleInsider. “There are only a couple of countries that are in the double digits.”
“We feel really good about the future of the iPhone,” Cook added, in regard to its future growth.
Apple reported its third-quarter results, turning in a record quarter and smashing expectations.
All eyes were on Apple, especially given how much the company has been impacted by the global semiconductor shortage. It appears the company has managed to navigate the shortage better than expected, and has the results to match.
Apple reported $81.4 billion, up 36% year over year, representing $1.30 per share earnings. In comparison, the company was expected to turn in $73.3 billion, or $1.01 per share.
iPhone sales grew 50% from last year, something analysts look for, given how important the iPhone is to the company’s bottom line. The company’s services business — which analyst have been watching as a way for the company to diversify its income beyond the iPhone — grew 33% to $17.49 billion. The growth was driven by the company’s 1.65 billion installed devices.
“This quarter, our teams built on a period of unmatched innovation by sharing powerful new products with our users, at a time when using technology to connect people everywhere has never been more important,” said Tim Cook, Apple’s CEO. “We’re continuing to press forward in our work to infuse everything we make with the values that define us — by inspiring a new generation of developers to learn to code, moving closer to our 2030 environment goal, and engaging in the urgent work of building a more equitable future.”
“Our record June quarter operating performance included new revenue records in each of our geographic segments, double-digit growth in each of our product categories, and a new all-time high for our installed base of active devices,” said Luca Maestri, Apple’s CFO. “We generated $21 billion of operating cash flow, returned nearly $29 billion to our shareholders during the quarter, and continued to make significant investments across our business to support our long-term growth plans.”
Apple is already experiencing pushback on its announced return-to-office plans, with employees writing a letter objecting and citing demands.
Apple CEO Tim Cook sent an email to employees last week outlining the company’s return-to-office policy. The company wants employees to be in the office Mondays, Tuesdays and Thursdays, with the option to work remotely Wednesday and Friday. Employees whose roles require more collaboration would be required to be in the office four or five days a week.
In the email, Cook emphasized the value of in-person collaboration, saying “video conference calling has narrowed the distance between us, to be sure, but there are things it simply cannot replicate.”
It appears some of Apple’s employees disagree, and are objecting to the company’s plans. In a letter seen by The Verge, Apple employees are framing the decision as something that could, and already has, force some to reconsider their employment.
“We would like to take the opportunity to communicate a growing concern among our colleagues,” the letter reads. “That Apple’s remote/location-flexible work policy, and the communication around it, have already forced some of our colleagues to quit. Without the inclusivity that flexibility brings, many of us feel we have to choose between either a combination of our families, our well-being, and being empowered to do our best work, or being a part of Apple.”
Adding to the issue is the claim that Apple has been tone-deaf over the last year, not listening to what the employees want.
“Over the last year we often felt not just unheard, but at times actively ignored,” the letter continues. “Messages like, ‘we know many of you are eager to reconnect in person with your colleagues back in the office,’ with no messaging acknowledging that there are directly contradictory feelings amongst us feels dismissive and invalidating…It feels like there is a disconnect between how the executive team thinks about remote / location-flexible work and the lived experiences of many of Apple’s employees.”
The employees are requesting a number of concessions, including remote work being left up to teams to decide, just as hiring decisions are. Other requests include clearer communication and survey/feedback options about remote work; better accommodation for disabilities, regardless of the work environment or location; a question added to exit surveys to determine if lack of remote work was a factor; and more information regarding the environmental impact of remote work versus returning to the office.
Given the blockbuster year Apple has experienced — including the introduction of the M1 chip, M1 Macs, the new M1-based iPad Pro, AirTags and more — the company may find it difficult to justify a hard line on in-office work when so much as been accomplished remotely.
Apple CEO Tim Cook has emailed employees, telling them to expect a return to the office in early September.
Like most companies, Apple sent employees home to work remotely as a result of the COVID-19 pandemic. Like many, the company’s work culture has been permanently changed by a year of remote work. As a result, Apple appears to be embracing a flexible work future, with Cook wanting employees in the office three days a week, while allowing them to continue working from home the remaining two.
“For all that we’ve been able to achieve while many of us have been separated, the truth is that there has been something essential missing from this past year: each other,” he said in the email, seen by The Verge. “Video conference calling has narrowed the distance between us, to be sure, but there are things it simply cannot replicate.”
Employees will be asked to work from the office Mondays, Tuesdays and Thursdays, and be able to continue working remotely Wednesdays and Fridays. Teams that require more in-person collaboration may be required to work in the office four or five days a week.
In addition, employees will also have the option, with manager approval, of working remotely up to two weeks a year, “to be closer to family and loved ones, find a change of scenery, manage unexpected travel, or a different reason all your own,” according to the email.
Apple joins a long list of companies, including Salesforce, Ford and GM, who are embracing flexible and remote work options, providing further evidence of a permanent shift in the nature of the post-pandemic workforce.
Apple has reported its quarterly results, delivering an astounding 54% year-over-year revenue growth.
The March quarter is not traditionally one of Apple’s strongest. This year, however, the company had a number of factors in its favor. The iPhone 12, with 5G support, was expected to cause a “super cycle” upgrade as individuals traded in older phones for the revolutionary new feature the 12 offered. Similarly, Apple’s move to its own custom silicon for its Mac line of computers have led to renewed demand.
The company also benefited from the transition to remote work, as Macs, iPhones and iPads saw increased demand among remote employees and students.
These factors resulted in a quarter that exceeded analysts expectations across the board, and accounted for revenue of $89.6 billion. The iPhone accounted for $47.9 billion, a 66% increase. The Mac saw a 70% increase, coming in at $9.1 billion. The iPad accounted for $7.8 billion, or a 35% increase.
“This quarter reflects both the enduring ways our products have helped our users meet this moment in their own lives, as well as the optimism consumers seem to feel about better days ahead for all of us,” said Tim Cook, Apple’s CEO. “Apple is in a period of sweeping innovation across our product lineup, and we’re keeping focus on how we can help our teams and the communities where we work emerge from this pandemic into a better world. That certainly begins with products like the all-new iMac and iPad Pro, but it extends to efforts like the 8 gigawatts of new clean energy we’ll help bring onto the grid and our $430 billion investment in the United States over the next 5 years.”
“We are proud of our March quarter performance, which included revenue records in each of our geographic segments and strong double-digit growth in each of our product categories, driving our installed base of active devices to an all-time high,” said Luca Maestri, Apple’s CFO. “These results allowed us to generate operating cash flow of $24 billion and return nearly $23 billion to shareholders during the quarter. We are confident in our future and continue to make significant investments to support our long-term plans and enrich our customers’ lives.”
Apple analyst Ming-Chi Kuo is predicting Apple’s long-rumored mixed reality glasses will arrive next year, in 2022.
Apple has been rumored to be working on mixed reality glasses for some time. Unlike a strict virtual reality environment, mixed reality combines virtual reality or augmented reality with a person’s surroundings — hence the “mixed reality” moniker. CEO Tim Cook has made no secret of his belief that augmented and mixed reality offer a more social and productive experience than straight virtual reality, one that keeps people connected to the world and people around them.
Ming-Chi Kuo is one of the most respected Apple analysts, with a solid track record predicting the company’s next moves. According to a note seen by MacRumors, Kuo is expecting the mixed reality glasses in 2022.
Apple is certainly not the first company to tackle augmented reality glasses. Google famously introduced one of the first, and most high-profile, entrants in the market — Google Glass.
One of Apple’s greatest strengths, however, is taking a concept someone else has pioneered and refining it in a way that leads to mass adoption. The iPad is a perfect example, a far more refined and consumer-friendly tablet than Microsoft’s much earlier Tablet PC.
If the company can deliver on its vision (pun intended) for mixed reality glasses, Apple may have an all-new category of devices to help drive its growth.
Apple uses its “Spring Loaded” event to unveil the new iPad Pro and an M1 iMac.
iMac
New iMac – Credit Apple
Cook highlighted the revolutionary impact of the transition to Apple’s custom M1 silicon, before giving the stage to John Ternus to discuss the latest addition to the M1 family: the iMac.
The new iMac is a throwback to the original iMac, coming in seven different colors. Unlike previous generations, however, the M1 allows the iMac to achieve an all new degree of thinness. In fact, the new model is only 11.5 millimeters thick.
iMac stays under 10 decimals under most situations, barely audible to the human ear.
Navpreet Koloty showed off the progress Apple has made on the iMac’s cameras, the best the company has ever put in a Mac. Cameras were always a weak point for the Mac, something that became more apparent during the pandemic, as people started relying on videoconferencing.
The iMac’s speakers and microphones also received a major upgrade, resulting in the best sound system ever put in a Mac.
The new machines are up to 85% faster than previous models, with up to 2x faster GPU performance and up to 50% faster than the fastest discrete graphics iMacs. Machine learning is up to 3x faster.
The iMac is the first desktop to offer Touch ID. Touch ID can be used to log in, make purchases and activate fast user switching, to switch between user accounts.
iPad Pro
iPad Pro and Magic Keyboard – Credit Apple
Raja Bose took the stage to announce the iPad Pro now has the M1 chip as well. The M1 in the iPad Pro delivers 50% faster performance than the previous generation. The 8-core GPU delivers up to 40% faster GPU performance than the previous model.
The new model includes support for the latest Playstation and Xbox controls, complete with haptic feedback.
The new iPad Pro has 2x faster storage access, and is now available with up to 2TB storage. New model includes Thunderbolt support with USB 4.
The new iPad Pro supports 5G, including mmWave in the US, giving it the ability to have 4Gbps download under ideal conditions.
iPad Pro Center Stage – Credit Apple
Fiona O’Leary showed the improvements Apple has made to the cameras. One of the biggest announcements was the introduction of Center Stage. Using the new 122-degree, Ultra-Wide camera and machine learning, Center Stage keeps the user in the center of the view, addressing one of the biggest complaints of the iPad’s current cameras.
The new models also include the much anticipated mini-LED display, complete Liquid Retina XDR, a first for the tablet line. The Magic Keyboard is also available in white.
The 11-inch model starts at $799, while the 12.9-inch starts at $1,099.
Apple has announced it is investing 1 billion euros to make Munich its European Silicon Design Center for 5G and future wireless technology research.
Apple has been working to create its own 5G modems and end its dependence on Qualcomm for some time. The company purchased Intel’s 5G modem business after the latter failed to make headway against Qualcomm.
Munich is already Apple’s largest European engineering hub, with nearly 1,500 engineers.
“I couldn’t be more excited for everything our Munich engineering teams will discover — from exploring the new frontiers of 5G technology, to a new generation of technologies that bring power, speed, and connectivity to the world,” said Tim Cook, Apple’s CEO. “Munich has been a home to Apple for four decades, and we’re grateful to this community and to Germany for being a part of our journey.”
Apple says the new facility will house the company’s cellular unit, with a focus on 5G and future wireless technology. The facility will be 30,000 square meters, located in central Munich’s Karlstrasse.
The Munich investment will no doubt play a significant role in Apple’s future developments, especially as the company moves more and more of its component tech in-house.
Dan Riccio, Apple former head of hardware, is reportedly heading up the company’s efforts to develop a virtual and augmented reality headset.
Dan Riccio has been heavily involved in Apple product design and hardware engineering since he joined the company in 1998. He was eventually appointed executive team leader of Hardware Engineering in 2012.
In January, however, Riccio was moved to a secret project, with John Ternus replacing him as hardware chief. Underscoring the importance of Riccio’s new role, he reports directly to Tim Cook. Some believed his new role might be tied to Project Titan, Apple’s car development efforts.
According to a new report by Bloomberg, however, it appears Riccio is working on a headset for virtual reality (VR) and augmented reality (AR). VR and AR have seen increased usage across a wide range of industries. While gaming is often the first people think of, VR and AR are being used to train personnel, provide therapy, improve remote workplace experiences, expand social networks and more.
Apple has been a big proponent of AR technology, rolling it out in the iPhone and iPad. If Bloomberg’s reports are true, a dedicated VR/AR headset would represent a significant increase in the company’s investment in the fledgling technology, and could pave the way for more widespread adoption.
Amid a slew of new rumors and information about the Apple Car, the company has hired Dr. Manfred Harrer, Porsche’s Vice President of Chassis Development.
Apple’s plans for a car, code-named “Project Titan,” are coming into clearer focus, thanks to reports, rumors and walked-back statements. Hyundai initially released a statement saying it was in talks with Apple to build a car, before walking that statement back in two subsequent ones.
Apple analyst Ming-Chi Kuo said Project Titan will use Hyundai’s E-GMP battery electric vehicle (BEV) chassis, giving the first glimpse at possible specs for the finished product.
At the same time, Apple’s hardware chief, Dan Riccio, recently was moved to a new project where he will report directly to CEO Tim Cook. For someone of Riccio’s stature within the company to be moved to a new project underscores the importance of that endeavor, as does his reporting directly to Cook, leading some to believe he may be working on Project Titan.
The latest news from Insider Deutschland, via 9to5Mac, indicates that Apple is moving forward with its hire of Dr. Harrer. Dr. Harrer has spent over a decade at Porsche, and been head of chassis development since 2016. His hiring is particularly interesting, given the rumors that Apple will use Hyundai’s E-GMP platform.
Apple is well-known for taking a platform and customizing it to meet their specific needs. One has only to look at the iPhone, iPad and Mac to see this in practice. While the processors used in all three devices are loosely based on Arm designs, Apple has a license that allows them to customize them so heavily that it truly has its own, custom silicon.
One can’t help but wonder if Dr. Harrer was hired with the same goal — to take Hyundai’s E-GMP platform and customize it to better meet Apple’s needs and goals. Just as Apple’s custom silicon consistently out-performs competitors using vanilla Arm designs, a customized E-GMP platform could end up out-performing Hyundai’s standard option.
Apple has obliterated estimates, posting an all-time record revenue for its Q1 earnings report.
Analysts were expecting the company to post $103.3 billion in revenue, far less than the whopping $111.4 billion Apple reported. That represents a 21% increase, year-over-year, coming in at $1.68 per share, an increase of 35%.
The company says international sales accounted for 64% of the company’s revenue, with China sales contributing a big portion. Sales in China increased 57%, coming in at $21.3 billion.
iPhone revenue reached an all-time high of $65.5 billion, rising 17%, driven by demand for the 5G iPhone 12. Apple’s diversification strategy is paying off as well, with the company’s services revenue hitting $15.8 billion, an increase of 24.2%. The company says it now has 620 million subscribers to its services, beating its goal of having 600 million at the end of 2020.
“This quarter for Apple wouldn’t have been possible without the tireless and innovative work of every Apple team member worldwide,” said Tim Cook, Apple’s CEO. “We’re gratified by the enthusiastic customer response to the unmatched line of cutting-edge products that we delivered across a historic holiday season. We are also focused on how we can help the communities we’re a part of build back strongly and equitably, through efforts like our Racial Equity and Justice Initiative as well as our multi-year commitment to invest $350 billion throughout the United States.”
“Our December quarter business performance was fueled by double-digit growth in each product category, which drove all-time revenue records in each of our geographic segments and an all-time high for our installed base of active devices,” said Luca Maestri, Apple’s CFO. “These results helped us generate record operating cash flow of $38.8 billion. We also returned over $30 billion to shareholders during the quarter as we maintain our target of reaching a net cash neutral position over time.”
Apple has announced a shakeup of its executive team, with hardware chief Dan Riccio taking on a new project.
Dan Riccio has been with Apple since 1998 as a leader on the Product Design team. From there he became vice president of iPad Hardware Engineering in 2010, and then executive team leader of Hardware Engineering in 2012. Riccio now moves on as a vice president of engineering. Most significantly, Apple says his new role will involving working on a new project and reporting directly to CEO Tim Cook.
In the meantime, John Ternus will take over Apple’s Hardware Engineering in place of Riccio.
“Every innovation Dan has helped Apple bring to life has made us a better and more innovative company, and we’re thrilled that he’ll continue to be part of the team,” said Tim Cook, Apple’s CEO. “John’s deep expertise and wide breadth of experience make him a bold and visionary leader of our Hardware Engineering teams. I want to congratulate them both on these exciting new steps, and I’m looking forward to many more innovations they’ll help bring to the world.”
“Working at Apple has been the opportunity of a lifetime, spent making the world’s best products with the most talented people you could imagine,” said Riccio. “After 23 years of leading our Product Design or Hardware Engineering teams — culminating with our biggest and most ambitious product year ever — it’s the right time for a change. Next up, I’m looking forward to doing what I love most — focusing all my time and energy at Apple on creating something new and wonderful that I couldn’t be more excited about.”
While Apple is not giving any hints about what project Riccio will be working on, one possibility is the Apple Car. The project is currently being led by Apple AI chief John Giannandrea, but it seems likely Riccio’s vast experience in hardware engineering would be an invaluable asset to the project. Alternatively, Riccio could be helming an entirely unrelated, yet to be revealed project.
