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Tag: Tim Cook

  • Apple’s Tim Cook Tells Congress The Tax Code Is Outdated

    Apple’s Tim Cook Tells Congress The Tax Code Is Outdated

    You may recall that Apple was on tap to testify at a Senate Permanent Subcommittee on Investigations hearing yesterday regarding accusations that it dodges taxes. As expected, Apple CEO Tim Cook denied the accusations. He did offer up his idea for tax reform while he was there though.

    During the hearing, Cook slammed the current U.S. tax code for not keeping up with the “digital age.” He also said that the “tax system handicaps American corporations in relation to our foreign competitors who don’t have such constraints on the free flow of capital.”

    So, what does Cook suggest the U.S. do about it? He says that the corporate tax rate needs to be slashed. His suggestion calls for a drop from a 35 percent tax rate to a mid-20s tax rate. He also encourages Congress to lower the tax rate on foreign earnings being brought into the U.S.

    The result of the above, Cook says, would encourage more investment in the United States and create more jobs. He even explicitly said that Apple will not bring billions in cash back to the U.S. unless Congress lowers the tax rate.

    There are many congressman who no doubt agree with Apple on this issue, but one vocally came out in defense of the company yesterday. The Hill reports that Sen. Rand Paul said the subcommittee’s hearing on Apple’s alleged tax avoidance was offensive. He called upon the subcommittee to immediately apologize to the company.

    Even after all of this, Apple isn’t quite done defending itself against accusations of tax avoidance. Reuters is reporting that major European leaders will be meeting to discuss what it sees as tax dodging from major tech corporations like Google, Apple and Amazon. Investigations have found that governments within the EU miss out on over €1 trillion, or $1.3 trillion USD, in tax revenue.

    [h/t: The Hill] [Image: lemagit/flickr]

  • Want Coffee with Tim Cook? Have $610K Sitting Around? You Have One More Day to Bid

    Want Coffee with Tim Cook? Have $610K Sitting Around? You Have One More Day to Bid

    Time is running out if you want to pay hundreds of thousands of dollars for a 30-minute coffee date with Apple CEO Tim Cook. Bidding on the charity auction that has drawn significant attention due to its astronomical price tag close tomorrow, Tuesday May 14th.

    The current bid is $605,000, and you’ll have to fork up at least $610,000 to top it.

    The date first appeared on online charity auction site Charitybuzz back in April, and quickly jumped from tens of thousands of dollars to hundreds of thousands. Charitybuzz put an estimated price of $50,000 on the sit-down, which will take place at Apple HQ in Cupertino. It surpassed that suggested value in less than 24 hours.

    In less than a week, the bids topped $600,000. Charitybuzz was forced to remove a top bid, however, after it was discovered that it was made using a stolen credit card.

    In light of that, Charitybuzz has added an extra layer of authentication to placing a bid. Any new bids must now go through additional bank qualification, and you have to contact their customer service to make it happen.

    So if you’re ready to top the current $605,000 bid, which has been the top bid for nearly two weeks now, you have about 24 hours to do so. The bidding closes at 4:08 pm ET on Tuesday.

  • Someone Is Going to Pay Millions to Get Coffee with Tim Cook

    Someone Is Going to Pay Millions to Get Coffee with Tim Cook

    Unless the bidding cools down fast, someone is going to pay millions of dollars for a half-an-hour coffee date with Apple CEO Tim Cook.

    We first told you about the charity auction earlier this week. Tim Cook is auctioning off a coffee date at Apple HQ in Cupertino for one lucky bidder and a friend. All of the money will benefit the RFK Center for Justice and Human Rights.

    When we first told you about it on Wednesday, the current bid was $36,999. Charitybuzz, the site that’s hosting the auction, put an estimated price of $50,000 on the prize. At that point, with 20 days left to go on the bidding, we assumed that it would eventually hit that $50,000 mark.

    But this is just bananas. As of the writing of this article, the top bid sits at $580,000. And there’s still 18 days left to go in the auction. The top bid was just over $300,000 this morning. Unless something happens and the bidding just dies, it looks like someone is seriously going to pay millions of dollars for a 30-minute to an hour meeting with Cook.

    Just think about it this way: Back in 2011, the top bid for such a prize on Charitybuzz went for face time with former President Bill Clinton. In the end, the top bid was $255,000.

    As the bidding goes higher, it’s likely that a companies will be the ones battling it out. Back when the bidding was lower, say a few thousand dollars, individuals were in the mix. Now, the last dozen or so bids have been dominated by companies. For instance, Drbluetooth.com is the current highest bid holder.

    We’ll keep our eye on this, but we fully expect the total to be absolutely insane by the time May 14th rolls around.

  • Someone Stole a Credit Card and Used it to Bid on a Date with Tim Cook

    Someone Stole a Credit Card and Used it to Bid on a Date with Tim Cook

    Apparently, the idea of sitting down and grabbing a cup of coffee is so damn exciting that someone decided to use a stolen credit card to try and make it happen.

    I’m sure you’ve been following the escalation of a particular charity auction on the site Charitybuzz – the one that offers a 30 minute to an hour-long coffee date with Apple CEO Tim Cook for the winner and a friend. Tim Cook is giving all of the money generated from the auction to the RFK Center for Justice and Human Rights. Of course, there’s nothing inherently wrong with auctioning yourself for charity. It’s admirable, actually, and it has the ability to generate a game-changing amount of funding for the center.

    The big surprise here is just how much people are willing to bid for the date.

    Charitybuzz placed an estimated value of $50,000 on the date, but zealous bidders have eclipsed that mark – and then some. The bid topped $50,000 very quickly, and then exploded as the bidding reached $605,000 by last Friday night. Yep, you read that right. $605,000 for a short break with Tim Cook at Apple HQ in Cupertino.

    Well, it turns out, there was something off about that $605,000 bid. Fortune noticed that this morning, the bid had fallen to $600,000. Why did it fall? Was it a glitch?

    Nope. Charitybuzz confirmed that the top bid was removed when it was found out that it was placed with a stolen credit card.

    But the fact remains, there is a legitimate $600,000 bid that’s currently winning this thing. And there are still 15 days left to go in the auction. To put this all in perspective, Charitybuzz’s previous record for something like this was set back in 2011 when someone paid $255,000 for some time with former President Bill Clinton.

  • Win a Date with Tim Cook, and by ‘Win’ We Mean ‘Pay $50,000’

    Win a Date with Tim Cook, and by ‘Win’ We Mean ‘Pay $50,000’

    Are you pissed off about something that Apple’s doing? Want to get your iPhone 5 signed? Want to congratulate the head of a major tech company on a job well done?

    Well, here’s your chance. Charity auction site Charitybuzz is currently hosting an auction to buy a coffee date with Apple CEO Tim Cook. It is an auction, so there’s no telling how high the price will go, but it is tagged with an estimated value of $50,000. And if you think that there’s no way that goal will be reached – think again. With 20 days left to bid, the bid currently stands at $36,999.

    The coffee date will take place at Apple HQ in Cupertino, and the prize is valid for up to 2 people. The coffee date will last between 30 minute and an hour. Travel and accommodations are not included.

    It’s all for a good cause, of course. Proceeds will benefit the RFK Center for Justice and Human Rights.

    “We expect all winning bidders and their guests to conduct themselves appropriately when attending an experience won at Charitybuzz. Polite manners and respect for the generous donor and adherence to any rules or parameters are a must,” says Charitybuzz.

    Well, there goes some possibilities. For $50,000, that coffee better be something.

    [CharityBuzz via AppleInsider]

  • Apple CEO Apologizes To Chinese Consumers

    Apple CEO Apologizes To Chinese Consumers

    Apple CEO Tim Cook apologized to China this week in a letter posted to the company’s Chinese site. The apology is for the company’s lack of communication with regards to its warranty policies for the iPhone 4 and 4S.

    The apology comes after customers in the country complained of not getting the same treatment as those in the U.S. who get full replacements from the company when they get a defective device. Chinese customers were only getting their devices repaired with replacement parts.

    This is the second apology Apple’s CEO has had to issue in recent memory. Cook also apologized for the lackluster Apple Maps product that accompanied iOS 6. This was the subject of numerous complaints from users who were used to Apple’s previous Google Maps-based offering.

    Here’s the full text of the new letter as translated by Google Translate (obviously it’s not perfect):

    To our Chinese consumers:

    In the past two weeks, we have received a lot of feedback about Apple in China repair and warranty policy. We are not only a profound reflection on these views, together with relevant departments to carefully study the “Three Guarantees”, and also look at our maintenance policy communication and combing our management specifications of Apple Authorized Service Provider. We are aware that, due to the lack of external communication in this process and lead to the speculation that Apple arrogance, do not care or do not attach importance to consumer feedback. We express our sincere apologies for any concerns or misunderstandings this gives consumers.

    In order to further improve the level of service, we are implementing the following four major adjustment:

    Improved iPhone 4 and iPhone 4S repair policy
    Provide a concise and clear on the website of the official Apple repair and warranty policy statement
    Increase the intensity of the supervision and training of Apple Authorized Service Provider
    Related issues to ensure that consumers can easily contact Apple Feedback Service
    At the same time, we also realize that operating in China, and communicate much we need to learn the place. Here, we assure you, Apple for the commitment and enthusiasm indistinguishable from other countries. Bring the best user experience for consumers and satisfactory service is our ideals, our commitment, and it has been deeply rooted in Apple’s corporate culture. We will make unremitting efforts to achieve this goal.

    iPhone 4 and iPhone 4S repair policy improvements are as follows:
    So far, iPhone 4 and iPhone 4S repair this in one of three ways: as from the purchase date of 15 days found the problem, we will be entitled to a refund or replacement for consumers recalculated 1 year warranty period iPhone; 15 days after discovery problem, Apple will replace the part depending, such as camera modules or batteries; replacement parts also can not quickly repaired the iPhone, Apple will provide consumers with a part reassembled new parts, retaining only the consumers existing iPhone 4 or iPhone 4S back cover.

    Nearly 90% of customers expressed satisfaction with our repair services, and consumer satisfaction is the most important criterion for Apple to measure its own success.

    But others suggested that part of the re-assembly of repair almost replace the machine, so the direct replacement of a device will be more beneficial to consumers. Therefore, since April 2013, Apple iPhone 4 and iPhone 4S service pack upgrade for all 1-year warranty on new equipment replacement parts and replacement date recalculated.

    Consumer iPhone 4 or iPhone 4S Apple or an Apple Authorized Service Provider has been part of the re-assembly kit maintenance, we will replace them as whole and for maintenance after the iPhone recalculated from the date of repair year warranty. Apple’s warranty system has been updated for the information and, therefore, affected consumers do not need to take any additional action.

    Now, all consumers can see on our site clear and comprehensive maintenance and warranty policy terms and conditions.
    We are pleased to provide consumers with information who wish to learn more about the after-sales service. For example, we have been to provide 2 year warranty for the MacBook Air and Mac computer motherboards and other major components. Likewise, the the iPad main components has been entitled to a 2-year warranty period, and other components for 1 year warranty.

    We realize that our site before this is not clearly stated policy. Hope the following will answer all the questions about Apple provides services.

    Apple is to make greater efforts to ensure that Apple Authorized Service Provider to follow our policies, and make every effort to provide consumers with the highest quality service.
    Week since March 18, 2013, we made a new training materials for all Apple Authorized Service Provider to ensure that each staff provide services for Apple products is not only familiar with our policies, but also to grasp three guarantees “provisions and related policies. The same time, we have taken the initiative through face-to-face meetings and other forms of verification and to ensure that each Apple Authorized Service Provider have opened training courses to update the knowledge of the staff for the maintenance and warranty policies. We will make unremitting efforts and continuous monitoring of the performance of the Apple Authorized Service Provider to ensure that consumers can get the highest quality service.

    Now, the feedback service-related issues is also very convenient.
    As the consumers of the services provided by any Apple Store retail store or an Apple authorized service provider doubt, to Welcome www.apple.com.cn/support/service/feedback/ directly get in touch with us. Our goal is to consumers where to buy Apple products or receive services, users can enjoy world-class experience.

    Heartfelt thank you to give us valuable feedback, we always harbor immense respect to China, the Chinese consumer is always the top priority of our hearts.

    Tim Cook
    Apple CEO

    [Hat tip: AppleInsider]

  • Apple CEO Tim Cook is Michelle Obama’s Guest at Tuesday’s State of the Union

    Apple CEO Tim Cook is Michelle Obama’s Guest at Tuesday’s State of the Union

    It’s going to be another Apple-heavy FLOTUS box at Tuesday night’s State of the Union address.

    First Lady Michelle Obama will be welcoming Apple CEO Tim Cook as one of her guests at the SOTU. According to the White House, Cook will be accompanied by “military families, those championing immigration reform and those whose lives have been touched by gun violence.”

    Also sitting with Mrs. Obama tomorrow night: Bobak Ferdowsi, better known as the “Mohawk Guy” from NASA that gained an internet following after the Mars Curiosity rover landed successfully on the Martian surface.

    This is the second year in a row that Michelle Obama has tapped someone associated with Apple to be her guest at the SOTU. Last year, her featured guest was Laurene Powell Jobs, widow of Apple co-founder Steve Jobs.

    It’ll be interesting to see just how far the First Lady and Tim Cook are seated from Ted Nugent.

    [via Mercury News]

  • Tim Cook Says iPhone 5’s Display Size Was Right Choice, Suggests Larger iPhone Isn’t Happening

    Tim Cook Says iPhone 5’s Display Size Was Right Choice, Suggests Larger iPhone Isn’t Happening

    One of the most prevalent rumors concerning the iPhone 5S, or iPhone 6, is that it will feature a larger display. The first rumor said that the next iPhone would come with multiple display sizes for consumers to choose from. You might not want to get your hopes for a larger iPhone though as Apple CEO Tim Cook thinks the current size is just perfect.

    During Apple’s Q1 2013 earnings call, Cook was asked about the latest rumors regarding a larger iPhone being on the horizon. The increased size of Android devices, and their increased popularity, have some analysts questioning Apple’s decision to stay small. For his part, Cook says that the iPhone 5’s 4-inch display is just fine:

    The iPhone 5 offers as you know a new 4-inch Retina display, which is the most advanced display in the industry and no one comes close to matching the level of quality as the Retina display. It also provides a larger screen size for iPhone customers without sacrificing the one-handed ease-of-use that our customers love. So, we put a lot of thinking into screen size and believe we’ve picked the right one.

    It’s not an outright denial, but it suggests that Apple thinks going over 4-inches is a little too much. It’s true that larger phones are a bit more unwieldy, but Android users obviously like the larger screens offered by the likes of Samsung and HTC. Would Apple sacrifice the iPhone’s “one-handed ease-of-use” to appeal to those who want larger devices? Tim Cook says no, but Apple says no to a lot of things that end up happening anyway.

    That being said, Cook may be only talking about this year. The latest rumor says that Apple will keep the 4-inch display in 2013 with two iPhones – one for established markets and a cheaper device for emerging markets. The rumor goes on to say that Apple will be upgrading the size of the iPhone in 2014 to a 4.8-inch display.

    A larger iPhone isn’t the only rumor that’s been shot down recently. Phil Schiller recently shot down another rumor of a cheap iPhone for emerging markets by China. He said going cheaper “will never be the future of Apple’s products.”

    [h/t: GottaBeMobile]

  • Apple Posts Record Revenue And Profit Yet Again, But Misses Expectations

    Apple Posts Record Revenue And Profit Yet Again, But Misses Expectations

    Apple just released its earnings report, breaking its own records yet again. The company posted record revenue of $54.5 billion and record quarterly net profit of $13.1 billion. These are up from revenue of $46.3 billion and net profit of $13.1 billion in the year-ago quarter.

    The company sold 47.8 Million iPhones and 22.9 Million iPads during the quarter, up from 37 million and 15.4 million respectively in the year-ago quarter. Mac sales were down year-over-year at 4.1 million from 5.2 million. iPod sales were down to 12.7 million from 15.4 million.

    CEO Tim Cook said, “We’re thrilled with record revenue of over $54 billion and sales of over 75 million iOS devices in a single quarter. We’re very confident in our product pipeline as we continue to focus on innovation and making the best products in the world.”

    Apple also declared a cash dividend of $2.65 per share of the company’s common stock, payable on February 14 to shareholders of record as of the close of business on February 11.

    Despite Apple’s record revenues and profits, the company still missed analyst’s expectations. Business Insider has a good comparison by the numbers of by how much for each category.

    Tim Cook praised the company’s “extraordinary quarter” during the earnings call, saying, “No technology company has ever reported these kinds of results.”

    Here’s the release in its entirety:

    CUPERTINO, Calif.–(BUSINESS WIRE)–Apple® today announced financial results for its 13-week fiscal 2013 first quarter ended December 29, 2012. The Company posted record quarterly revenue of $54.5 billion and record quarterly net profit of $13.1 billion, or $13.81 per diluted share. These results compare to revenue of $46.3 billion and net profit of $13.1 billion, or $13.87 per diluted share, in the 14-week year-ago quarter. Gross margin was 38.6 percent compared to 44.7 percent in the year-ago quarter. International sales accounted for 61 percent of the quarter’s revenue.

    “We’re very confident in our product pipeline as we continue to focus on innovation and making the best products in the world.”

    Average weekly revenue was $4.2 billion in the quarter compared to $3.3 billion in the year-ago quarter.

    The Company sold a record 47.8 million iPhones in the quarter, compared to 37 million in the year-ago quarter. Apple also sold a record 22.9 million iPads during the quarter, compared to 15.4 million in the year-ago quarter. The Company sold 4.1 million Macs, compared to 5.2 million in the year-ago quarter. Apple sold 12.7 million iPods in the quarter, compared to 15.4 million in the year-ago quarter.

    Apple’s Board of Directors has declared a cash dividend of $2.65 per share of the Company’s common stock. The dividend is payable on February 14, 2013, to shareholders of record as of the close of business on February 11, 2013.

    “We’re thrilled with record revenue of over $54 billion and sales of over 75 million iOS devices in a single quarter,” said Tim Cook, Apple’s CEO. “We’re very confident in our product pipeline as we continue to focus on innovation and making the best products in the world.”

    “We’re pleased to have generated over $23 billion in cash flow from operations during the quarter,” said Peter Oppenheimer, Apple’s CFO. “We established new all-time quarterly records for iPhone and iPad sales, significantly broadened our ecosystem, and generated Apple’s highest quarterly revenue ever.”

    Apple is providing the following guidance for its fiscal 2013 second quarter:

    • revenue between $41 billion and $43 billion

    • gross margin between 37.5 percent and 38.5 percent

    • operating expenses between $3.8 billion and $3.9 billion

    • other income/(expense) of $350 million

    • tax rate of 26%

    Apple will provide live streaming of its Q1 2013 financial results conference call beginning at 2:00 p.m. PST on January 23, 2013 atwww.apple.com/quicktime/qtv/earningsq113. This webcast will also be available for replay for approximately two weeks thereafter.

    This press release contains forward-looking statements including without limitation those about the Company’s estimated revenue, gross margin, operating expenses, other income/(expense), and tax rate. These statements involve risks and uncertainties, and actual results may differ. Risks and uncertainties include without limitation the effect of competitive and economic factors, and the Company’s reaction to those factors, on consumer and business buying decisions with respect to the Company’s products; continued competitive pressures in the marketplace; the ability of the Company to deliver to the marketplace and stimulate customer demand for new programs, products, and technological innovations on a timely basis; the effect that product introductions and transitions, changes in product pricing or mix, and/or increases in component costs could have on the Company’s gross margin; the inventory risk associated with the Company’s need to order or commit to order product components in advance of customer orders; the continued availability on acceptable terms, or at all, of certain components and services essential to the Company’s business currently obtained by the Company from sole or limited sources; the effect that the Company’s dependency on manufacturing and logistics services provided by third parties may have on the quality, quantity or cost of products manufactured or services rendered; risks associated with the Company’s international operations; the Company’s reliance on third-party intellectual property and digital content; the potential impact of a finding that the Company has infringed on the intellectual property rights of others; the Company’s dependency on the performance of distributors, carriers and other resellers of the Company’s products; the effect that product and service quality problems could have on the Company’s sales and operating profits; the continued service and availability of key executives and employees; war, terrorism, public health issues, natural disasters, and other circumstances that could disrupt supply, delivery, or demand of products; and unfavorable results of other legal proceedings. More information on potential factors that could affect the Company’s financial results is included from time to time in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s public reports filed with the SEC, including the Company’s Form 10-K for the fiscal year ended September 29, 2012, and its Form 10-Q for the quarter ended December 29, 2012 to be filed with the SEC. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

    Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.

    NOTE TO EDITORS: For additional information visit Apple’s PR website (www.apple.com/pr), or call Apple’s Media Helpline at (408) 974-2042.

    © 2013 Apple Inc. All rights reserved. Apple, the Apple logo, Mac, Mac OS and Macintosh are trademarks of Apple. Other company and product names may be trademarks of their respective owners.

    Apple Inc.

    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

    (In millions, except number of shares which are reflected in thousands and per share amounts)
    Three Months Ended
    December 29,
    2012    		 December 31,
    2011
    Net sales $ 54,512 $ 46,333
    Cost of sales (1) 33,452 25,630
     
    Gross margin 21,060 20,703
    Operating expenses:
    Research and development (1) 1,010 758
    Selling, general and administrative (1) 2,840 2,605
    Total operating expenses 3,850 3,363
    Operating income 17,210 17,340
    Other income/(expense), net 462 137
    Income before provision for income taxes 17,672 17,477
    Provision for income taxes 4,594 4,413
    Net income $ 13,078 $ 13,064
    Earnings per share:
    Basic $ 13.93 $ 14.03
    Diluted $ 13.81 $ 13.87
    Shares used in computing earnings per share:
    Basic 938,916 931,041
    Diluted 947,217 941,572
    Cash dividends declared per common share $ 2.65 $ 0
    (1) Includes share-based compensation expense as follows:
    Cost of sales $ 85 $ 63
    Research and development $ 224 $ 160
    Selling, general and administrative $ 236 $ 197
    Apple Inc.

    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

    (In millions, except number of shares which are reflected in thousands)
    December 29,
    2012    		 September 29,
    2012
    ASSETS:
    Current assets:
    Cash and cash equivalents $ 16,154 $ 10,746
    Short-term marketable securities 23,666 18,383
    Accounts receivable, less allowances of $119 and $98, respectively 11,598 10,930
    Inventories 1,455 791
    Deferred tax assets 2,895 2,583
    Vendor non-trade receivables 9,936 7,762
    Other current assets 6,644 6,458
    Total current assets 72,348 57,653
    Long-term marketable securities 97,292 92,122
    Property, plant and equipment, net 15,422 15,452
    Goodwill 1,381 1,135
    Acquired intangible assets, net 4,462 4,224
    Other assets 5,183 5,478
    Total assets $ 196,088 $ 176,064
    LIABILITIES AND SHAREHOLDERS’ EQUITY:
    Current liabilities:
    Accounts payable $ 26,398 $ 21,175
    Accrued expenses 13,207 11,414
    Deferred revenue 7,274 5,953
    Total current liabilities 46,879 38,542
    Deferred revenue – non-current 2,938 2,648
    Other non-current liabilities 18,925 16,664
    Total liabilities 68,742 57,854
    Commitments and contingencies
    Shareholders’ equity:
    Common stock, no par value; 1,800,000 shares authorized; 938,973 and 939,208 shares issued and outstanding, respectively 17,167 16,422
    Retained earnings 109,567 101,289
    Accumulated other comprehensive income 612 499
    Total shareholders’ equity 127,346 118,210
    Total liabilities and shareholders’ equity $ 196,088 $ 176,064
    Apple Inc.

    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

    (In millions)
    Three Months Ended
    December 29,
    2012    		 December 31,
    2011
    Cash and cash equivalents, beginning of the period $ 10,746 $ 9,815
    Operating activities:
    Net income 13,078 13,064
    Adjustments to reconcile net income to cash generated by operating activities:
    Depreciation and amortization 1,588 721
    Share-based compensation expense 545 420
    Deferred income tax expense 1,179 1,456
    Changes in operating assets and liabilities:
    Accounts receivable, net (668) (3,561)
    Inventories (664) (460)
    Vendor non-trade receivables (2,174) (1,206)
    Other current and non-current assets 413 (962)
    Accounts payable 6,145 4,314
    Deferred revenue 1,611 1,296
    Other current and non-current liabilities 2,373 2,472
    Cash generated by operating activities 23,426 17,554
    Investing activities:
    Purchases of marketable securities (37,192) (40,175)
    Proceeds from maturities of marketable securities 3,460 3,038
    Proceeds from sales of marketable securities 23,002 21,472
    Payments made in connection with business acquisitions, net (284) 0
    Payments for acquisition of property, plant and equipment (2,317) (1,321)
    Payments for acquisition of intangible assets (138) (108)
    Other (52) (34)
    Cash used in investing activities (13,521) (17,128)
    Financing activities:
    Proceeds from issuance of common stock 76 91
    Excess tax benefits from equity awards 404 333
    Dividends and dividend equivalent rights paid (2,493) 0
    Repurchase of common stock (1,950) 0
    Taxes paid related to net share settlement of equity awards (534) (355)
    Cash (used in)/generated by financing activities (4,497) 69
    Increase in cash and cash equivalents 5,408 495
    Cash and cash equivalents, end of the period $ 16,154 $ 10,310
    Supplemental cash flow disclosure:
    Cash paid for income taxes, net $ 1,890 $ 1,474
    Apple Inc.
    Q1 2013 Unaudited Summary Data
    (Units in thousands, Revenue in millions)
    Q1’13 (a) Q4’12 (a) Q1’12 (a) Sequential Change Year/Year Change
    Operating Segments Revenue Revenue Revenue Revenue Revenue
    Americas $ 20,341 $ 13,810 $ 17,714 47% 15%
    Europe 12,464 8,023 11,256 55% 11%
    Greater China (b) 6,830 5,427 4,080 26% 67%
    Japan 4,443 2,367 3,550 88% 25%
    Rest of Asia Pacific 3,993 2,110 3,617 89% 10%
    Retail 6,441 4,229 6,116 52% 5%
    Total Apple $ 54,512 $ 35,966 $ 46,333 52% 18%
    Q1’13 (a) Q4’12 (a) Q1’12 (a) Sequential Change Year/Year Change
    Product Summary Units Revenue Units Revenue Units Revenue Units Revenue Units Revenue
    iPhone (c) 47,789 $ 30,660 26,910 $ 16,645 37,044 $ 23,950 78% 84% 29% 28%
    iPad (c) 22,860 10,674 14,036 7,133 15,434 8,769 63% 50% 48% 22%
    Mac (c) 4,061 5,519 4,923 6,617 5,198 6,598 – 18% – 17% – 22% – 16%
    iPod (c) 12,679 2,143 5,344 820 15,397 2,528 137% 161% – 18% – 15%
    iTunes/Software/Services (d) 3,687 3,496 3,020 5% 22%
    Accessories (e) 1,829 1,255 1,468 46% 25%
    Total Apple $ 54,512 $ 35,966 $ 46,333 52% 18%
    (a) Q1’13 and Q4’12 spanned 13 weeks whereas Q1’12 included a 14th week.
    (b) Greater China includes China, Hong Kong and Taiwan.
    (c) Includes deferrals and amortization of related non-software services and software upgrade rights.
    (d) Includes revenue from sales on the iTunes Store, the App Store, the Mac App Store, and the iBookstore, and revenue from sales of AppleCare, licensing and other services.
    (e) Includes sales of hardware peripherals and Apple-branded and third-party accessories for iPhone, iPad, Mac and iPod.

  • Here’s Apple CEO Tim Cook’s Interview On Rock Center

    Here’s Apple CEO Tim Cook’s Interview On Rock Center

    Apple CEO Tim Cook appeared on Rock Center with Brian Williams this week in a rare television interview. As Williams points out, Cook is able to walk around public places without being recognized. Pretty incredible, considering the popularity of the products his company makes and the enormous recognizability of his predecessor. Of course that changes when he gets to the Apple Store.

    Williams basically told Cook that if Apple can continue to stay fresh, it will be the first company ever to do so. Cook’s response was, “Don’t bet against us.”

    Williams asked Cook, “How are you not Steve Jobs?”

    “In many ways,” Cook replied. “One of the things he did for me that removed a gigantic burden that would have normally existed, is he told me on a couple of occasions before he passed away, was to never question what he would have done. Never ask the question what Steve would do – to just do what’s right.”

    Brian then discussed the Maps debacle with Cook, who said it didn’t meet the company’s expectations, which are even higher than the customers. “We screwed up, and we are putting the weight of the company behind correcting it,” he said.

    The segment is a little over 11:00 minutes. Give it a watch.

    Visit NBCNews.com for breaking news, world news, and news about the economy

  • Tim Cook Is a Technology Lightweight with No Sense of Loyalty, According to Former Apple Exec

    Tim Cook Is a Technology Lightweight with No Sense of Loyalty, According to Former Apple Exec

    When someone who used to work for a company starts talking smack about someone who currently leads said company, you have to question their motives. Nevertheless, when a former Apple sales exec has this harsh of an opinion of Apple CEO Tim Cook, it’s interesting.

    ReadWrite (formerly ReadWriteWeb) talked to David Sobotta, a former Apple sales exec who left the company in 2004. In his time with the company, he never reported directly to Cook, but he did have plenty of contact with him. Cook joined Apple back in 1998.

    According to Sobotta, Cook has plenty of flaws as a leader. Here are some choice quotes from the interview:

    On his relationship with employees:

    “Well, for starters, Cook is not a people person. He certainly will not stand behind someone if the going gets rough. He is not that kind of guy. I sense no personal loyalty in him, and I suspect employees already understand that.

    Tim will react to the numbers or his fear of being wrong quickly. Fear of being wrong is a managerial trait that runs strong and deep in Apple because of the way Steve ran the company. Even the appearance of being wrong when in the end you might be right is dreaded at Apple.”

    On his technology acumen:

    “Technology-wise, I think Tim Cook is a lightweight. I never felt passion for technology from Tim like I did from Steve and some of the great engineers.”

    And on his leadership skills (or lack thereof):

    “I would expect that Tim is having a hard time herding the chickens. From what I saw of him, he was something of a loner. He is not a warm guy nor is he the type to go wandering the halls or Caffe Mac to find out what is happening. His preference is to tinker with spreadsheets and numbers. He is not a natural leader. He’s a manager.”

    Sobotta says that he doesn’t have any reason to beef with Cook, or Apple as a whole. Just a few weeks ago he published his memoir of his 20 years at Apple, titled “The Pomme Company.”

  • New iPad Sales Double Those Of Last iPad For First 3 Days

    New iPad Sales Double Those Of Last iPad For First 3 Days

    Apple announced this morning that it sold a total of three million of its new iPad models – the iPad mini and 4th generation iPad – in their first three days of availability. That is twice as many sales as the company saw for third-generation iPads when that model launched.

    Apple CEO Tim Cook said, “Customers around the world love the new iPad mini and fourth generation iPad. “We set a new launch weekend record and practically sold out of iPad minis. We’re working hard to build more quickly to meet the incredible demand.”

    The company notes that demand for the iPad mini exceeded its initial supply. Many of the pre-orders have been shipped to customers, but won’t be shipped until later this month.

    So far, only the Wi-Fi version has been available for the new models, and the Wi-Fi + Cellular versions of the iPad mini and fourth generation iPad will ship in a few weeks in the U.S. They’ll come to other countries later this year.

    The Wi-Fi versions are currently available in 34 countries, and will also be available in others (including China) later this year.

    Meanwhile, new data from IDC shows that Apple’s share of the overall tablet market has fallen to just over 50%, with Samsung, Amazon, and Asus making significant ground. The entire tablet market has grown 49.5% since the third quarter.

  • Apple Cans Scott Forstall Over Maps, Retail Chief Out As Well

    Apple Cans Scott Forstall Over Maps, Retail Chief Out As Well

    Apple announced a big company-wide reorganization at the upper level late Monday. The shakeup saw the company let go of two execs – Scott Forstall and John Browett, and it also saw others given more responsibilities in Cupertino.

    “Apple today announced executive management changes that will encourage even more collaboration between the Company’s world-class hardware, software and services teams. As part of these changes, Jony Ive, Bob Mansfield, Eddy Cue and Craig Federighi will add more responsibilities to their roles. Apple also announced that Scott Forstall will be leaving Apple next year and will serve as an advisor to CEO Tim Cook in the interim,” said a press release.

    Apple doesn’t giver any additional information on what led to Forstall’s ousting. But the mobile software head and 15-year veteran of the company is said to have left due to a scuffle over Apple’s failed Maps product launch. The Wall Street Journal reports that Forstall was asked to exit his role after he refused to sign an apology for the problems with Apple’s recently-launched Maps product. The New York Times also says that this incident was the catalyst for his departure, but also adds that tensions had been brewing for some time.

    Apple also ousted newer hire John Browett, saying “a search for a new head of Retail is underway and in the interim, the Retail team will report directly to Tim Cook.”

    One of the big stories from this management shakeup is the rise of Jony Ive. As part of the stated changes, Ive will now head all of Apple’s product design.

    Here’s what Apple had to say in a press release:

    “Jony Ive will provide leadership and direction for Human Interface (HI) across the company in addition to his role as the leader of Industrial Design. His incredible design aesthetic has been the driving force behind the look and feel of Apple’s products for more than a decade.”

    You probably know Ive best from his role as product walkthrough guy in all of those Apple videos you see for various new products (recently the iPhone 5 and the iPad mini).

    Others like Eddy Cue, Craig Federighi, and Bob Mansfield will also take on bigger roles.

  • Google: Here’s How To Use Google Maps On iOS

    Google: Here’s How To Use Google Maps On iOS

    By now, you probably know the story. Apple dropped Google Maps from its Maps app on iOS 6. People don’t like Apple’s new version so much. Apple CEO Tim Cook apologized to customers today for the lackluster product. Apple is even going so far as to recommend alternatives from the App Store.

    Google Maps, however, is not in the App Store. Still, you can use Google Maps from the the mobile web version on iOS 6. This is pretty much common sense, but Google has taken to Google+ to post some steps for using Google Maps on your iPhone, iPad or iPod Touch:

    Google

    Google6 minutes ago

    Google Maps is available to everyone using any mobile browser. And this includes iOS6 users. Accessing Google Maps is really easy—just follow the steps below. 

    1. Open the Safari browser and go to maps.google.com 
    2. Tap the Share button (on the bottom middle of the screen on iPhone, at the top on iPad)
    3. Tap “Add to Home Screen”
    4. Tap “Add” in the upper right corner of the screen
    5. Now, simply tap on the icon and let Google Maps get you where you want to go!

    With Google Maps on your mobile browser, you get many of the same Google Maps features you’re familiar with, including the ability to:
    -See your current location
    -Get driving, transit, biking and walking directions
    -Turn on satellite, transit, traffic, biking and other layers
    -Search for nearby landmarks, restaurants and other points of interest
    -See clickable icons for popular businesses and transit stations, as well as detailed information such as hours of operation, Zagat scores and more
    -When signed into your Google account, access your recent searches, starred locations and My Maps

    Google Maps for mobile web browsers provides the latest features without needing to install any updates, no matter what device you use.

    90    12 Powered by socialditto

    Even Cook mentioned the web version of Google in his apology letter as possible alternative. Clearly, Apple does not want to sacrifice user experience too much, and doesn’t want to alienate customers over such an important part of the mobile experience.

    Google will likely have an actual app for Google Maps out by the end of the year, and Apple will no doubt work vigorously on improving its own offering. It will be quite interesting to see how the two are competing with each other a year from now. In the meantime, other services are getting a chance to shine, even with Apple’s help through featured App Store promotion and Tim Cook’s highly publicized letter.

  • Apple CEO Apologizes For Maps, App Store Promotes Competitors

    Apple CEO Apologizes For Maps, App Store Promotes Competitors

    As previously reported, Apple CEO Tim Cook issued an apology to iOS device customers today, admitting that the Maps product, which the company replaced Google Maps with, is not a great product, and even went so far as to suggest some alternatives for users.

    “At Apple, we strive to make world-class products that deliver the best experience possible to our customers,” said Cook. “With the launch of our new Maps last week, we fell short on this commitment. We are extremely sorry for the frustration this has caused our customers and we are doing everything we can to make Maps better.”

    “While we’re improving Maps, you can try alternatives by downloading map apps from the App Store like Bing, MapQuest and Waze, or use Google or Nokia maps by going to their websites and creating an icon on your home screen to their web app,” he said.

    Read the full letter here.

    Interestingly enough, Cook didn’t just mention some alternatives in the letter, but Apple is actually promoting alternatives in the App Store. In the featured section, there’s a box for “Find maps for your iPhone/iPad,” which points to a selection of Map Apps, including: MotionX GPS Drive, Waze Social GPS traffic & gas, MapQuest, GPS by TeleNav, Navigon USA, CoPilot Live Premium HD, CoPilot GPS, Bing, and AT&T Navigator (hat tip: Drew Olanoff).

    Find Maps

    Competitors were already touting their offerings as Apple’s customers complained, and now the company appears to be helping them along. This is a good chance for some of these other apps to pick up some users, before Google undoubtedly gets a Google Maps app on iOS. It’s expected sometime before the end of the year.

  • Apple: We Fell Short On Maps, But You Can Still Use Google Or Something Else

    Apple: We Fell Short On Maps, But You Can Still Use Google Or Something Else

    Unless you’ve been living under a rock, you’ve probably either heard or experienced first hand how bad Apple’s Maps product is. Apple replaced Google Maps with its own offering in iOS 6 when it was released, and ever since, users have been complaining and pointing out numerous errors, wondering when Google will release a new iOS app.

    People will often complain about changes to the products they love, but even Apple is acknowledging how poor its product was. CEO Tim Cook has posted a letter to Apple customers on the company’s website, apologizing for the user experience, and even pointing to some alternatives.

    In the letter, Cook says users have already searched over half a billion locations with Apple’s Maps. He doesn’t say how many of those locations were actually accurate.

    Here’s the letter in its entirety:

    To our customers,

    At Apple, we strive to make world-class products that deliver the best experience possible to our customers. With the launch of our new Maps last week, we fell short on this commitment. We are extremely sorry for the frustration this has caused our customers and we are doing everything we can to make Maps better.

    We launched Maps initially with the first version of iOS. As time progressed, we wanted to provide our customers with even better Maps including features such as turn-by-turn directions, voice integration, Flyover and vector-based maps. In order to do this, we had to create a new version of Maps from the ground up.

    There are already more than 100 million iOS devices using the new Apple Maps, with more and more joining us every day. In just over a week, iOS users with the new Maps have already searched for nearly half a billion locations. The more our customers use our Maps the better it will get and we greatly appreciate all of the feedback we have received from you.

    While we’re improving Maps, you can try alternatives by downloading map apps from the App Store like Bing, MapQuest and Waze, or use Google or Nokia maps by going to their websites and creating an icon on your home screen to their web app.

    Everything we do at Apple is aimed at making our products the best in the world. We know that you expect that from us, and we will keep working non-stop until Maps lives up to the same incredibly high standard.

    Tim Cook
    Apple’s CEO

    This makes the second out of the last 3 iPhone launches that Apple has had to come out and publicly apologize for a part of. See “Antennagate”. Granted, this is really about one app, and doesn’t really reflect poorly on the device itself.

  • Steve Jobs Hologram Appears At iPhone 5 Event, Raps (In This Parody Video)

    Steve Jobs Hologram Appears At iPhone 5 Event, Raps (In This Parody Video)

    The Apple parody videos just never stop, do they? This one from MondoMedia comes just ahead of Apple’s big iPhone 5 press event, and features a Steve Jobs hologram at the actual event. And he’s not happy.

    Just so you know, in the video, Jobs tells Apple CEO Tim Cook he’s going to beat his “skinny ass” with a MacBook.

    More iPhone 5 coverage here.

    [via Cult of Android]

  • Apple, Google Are Talking Out Their Patent Dispute

    Apple, Google Are Talking Out Their Patent Dispute

    Reuters is reporting that Apple and Google are having serious conversations aimed at coming to an agreement on “a range of intellectual property matters,” including, of course, their patent disputes. Evidently, Apple CEO Tim Cook and Google CEO Larry Page had a phone conversation regarding their companies last week, and other executives at the companies are conversing as well. Reuters’ unnamed sources say the CEOs will be speaking again “in the coming weeks.”

    Though Google didn’t have much to say about Apple’s utter defeat of Samsung, it did quietly file a lawsuit against Apple for patent infringement just before the Samsung verdict came in. Just wanted to test out its shiny new Motorola Mobility patents that it purchased this year, I suppose.

    So that’s it, right? The two largest heavyweights of tech have finally met for a patent fight to the death. No, not really. Both companies have too much to lose. Apple is now the most valuable company in history and Google is banking on the mobile web as its next big advertising platform.

    Larry Page, CEO of GoogleGoogle’s lawsuit, the company told Bloomberg, was an attention-getting move to force Apple into talks. So, while Apple didn’t care to settle with Samsung, it really does have to talk things out with Google.

    So, it seems a deal compromising on the basic aspects of the Android and iOS operating systems will, most likely, be forthcoming in the future. It’s a situation that would probably not be taking place if Steve Jobs were still CEO of Apple, as the man hated Google for creating Android.

  • iPhone 5 Rumors Mean Lower iPhone Sales For Apple

    iPhone 5 Rumors Mean Lower iPhone Sales For Apple

    Apple released its quarterly earnings report on Tuesday, and included in that were slower than usual iPhone sales.

    The latest rumor is that the iPhone 5 (and possibly the iPad Mini) will be released in September. This piece of rumorformation comes from analyst Ming-Chi Kuo, as reported by BGR.

    Apple CEO Tim Cook and CFO Peter Oppenheimer spoke on the company’s earnings call, acknowledging that speculation about the device has hurt iPhone sales. Essentially, people want to wait for the next version, rather than buying one before it comes out.

    “We’re reading the same speculation about a new iPhone as you are, and we think this has caused some delay in purchasing,” Oppenheimer is quoted as saying.

    Still, it’s not as though Apple isn’t selling iPhones. The company still sold 26 million of them in the quarter, representing growth of 28% over Q3. Apple sold 26 million iPhones in the last quarter, which represents a growth of 28% year-over-year. They also happened to sell 17 million iPads (an 84% increase year-over-year).

    Rumor has it that the iPhone 5 (which may not even actually be called the iPhone 5) is currently in the manufacturing stage. The device, no matter what it’s called, is also rumored to have a smaller dock connector than its predecessors, which will mean it won’t be compatible with many existing iPhone accessories.

  • Apple CEO Tim Cook Confirms New Mac Pro Next Year

    Apple CEO Tim Cook Confirms New Mac Pro Next Year

    Yesterday we told you that an unnamed Apple executive had reportedly confirmed a new iMac and Mac Pro for next year. After that story ran yesterday, confirmation of half of that rumor came from perhaps the last place you’d expect: none other than Apple CEO Tim Cook himself.

    As you may know, Steve Jobs was in the habit of responding – seemingly at random – to customer emails to his public email address. Tim Cook has continued that tradition, occasionally answering emails from customers about Apple products, customer service issues, and more. This time, the email in question was from a disgruntled Mac Pro fan. The Mac Pro, the workhorse of the Mac lineup, has been languishing for two years without a major update. As you might expect, the situation is extremely frustrating to Mac Pro fans – many of whom are developers of iOS or OS X software. Given how long they’ve waited many of these fans, including the ones on Facebook, were less than thrilled with the update the Mac Pro finally got on Monday. While the MacBook line feasted on new CPUs and GPUs and more efficient RAM and a retina display, the Mac Pro, was stuck eating the crumbs that fell on the floor: a minor bump in processing power, and a price cut for the 12-core model, and that’s about it.

    This frustration, presumably, was reflected in the email sent to Cook asking where the new Mac Pro was. Well, according to Forbes, Cook responded. Here’s the email in its entirety:

    Franz,

    Thanks for your email. Our Pro customers like you are really important to us. Although we didn’t have a chance to talk about a new Mac Pro at today’s event, don’t worry as we’re working on something really great for later next year. We also updated the current model today.

    We’ve been continuing to update Final Cut Pro X with revolutionary pro features like industry leading multi-cam support and we just updated Aperture with incredible new image adjustment features.

    We also announced a MacBook Pro with a Retina Display that is a great solution for many pros.

    Tim

    So if you’re disappointed by the lack of a decent update to the Mac Pro, it looks like you’ve only got another year or so to wait. No biggie, right?

    Meanwhile, it seems that David Pogue, who originally reported that there would be new iMac and Mac Pro models next year, might have been a bit off. An Apple spokesperson told Forbes that the report about a new iMac in 2013 is wrong. That could mean that we won’t be seeing a new iMac until 2014. On the other hand, the current iMac is a year old, and while Apple may be willing to let the Mac Pro languish for three years without a major refresh, the iMac is a far better-selling computer, so odds are good we can expect a new iMac before year’s end.

  • Tim Cook Thinks U.S. Patent System Is Broken

    Tim Cook Thinks U.S. Patent System Is Broken

    Often in the tech world it seems that you can hardly go a day without hearing about some new lawsuit where one company is suing another for violating its intellectual property. Whether it’s non-practicing entities (i.e., patent trolls) going after companies like Apple or Microsoft to make a quick buck, or it’s companies like Apple, Samsung, Microsoft, Motorola, or Google going after one another, the patent wars have gotten pretty crazy.

    In an interview with Kara Swisher and Walt Mossberg during the opening session of AllThingsD’s D10 Conference, Apple CEO talked at some length about these lawsuits, and expressed some pretty strong opinions. When Swisher asked whether Cook thought patent litigation was a problem for innovation, Cook responded “well, it’s a pain in the ass.”

    He went on to echo comments he made during Apple’s quarterly earnings call last month. He stressed his belief that “it’s important that Apple not be the developer for the world.” He went on to draw an analogy between Apple’s innovation and art:

    We can’t take all of our energy and all of our care and finish the painting and have someone else put their name on it. We can’t have that. The worst thing in the world that can happen to you if you’re and engineer and you’ve given your life to something is for someone to rip it off and put their name on it. And so what we want to accomplish is that we just want people to invent their own stuff.

    Mossberg replied that there are companies that accuse Apple of ripping them off, and have therefore sued Apple. In response, Cook pointed out the difference between ordinary patents and standards essential patents. He said that “the vast majority of those [suits] are over standards essential patents.” A standards essential patent covers anything that is necessary to build a certain kind of product – Cook used the example of a kind of technology that is necessary to access a 3G data network. As Cook pointed out, owners of patents that are considered standards essential are legally obligated to license those patents on fair, reasonable, and non-discriminatory (FRAND) terms.

    Companies that refuse to do so, Cook said, are basically trying to cash in: “they’re in essence telling you that they’re not going to license it because they want to go get an injunction.” Cook called the use of standards essential patents in litigation “an area where the patent system is broken today.” The suits that certain companies (Cook avoided using names, though Motorola is notorious for this) file over standards essential patents represent an attempt, Cook said, to use the court system “in a way that it wasn’t intended.”

    He went on to say that Apple does not file lawsuits over the standards-essential patents it owns, “because we view that it’s fundamentally wrong to do that.” Such suits, he said, were “never the intention of a standards essential patent.”

    Getting back to the original question of whether patent litigation is a problem for innovation, Cook said that it “is maddening, it’s a waste, it’s a time suck. However, does it stop innovation? It’s not going to stop us.” Cook concluded by expressing hope that “some of the regulators and so forth will charge at this and begin to fix it.”

    You can watch the full video with Cook’s remarks below: