Apple braces for ‘product transition’ before October

Yesterday, Apple reported financial results for its latest fiscal quarter. The company saw its revenue rise 38% to $7.46 billion compared to last year, while its net profits grew to $1.07 billion, and Mac shipments increased 41% to almost 2.5 million units. In short, Apple did so well that Steve Jobs called the quarter, “The best June quarter for both revenue and earnings in Apple’s history.”

But that’s not the interesting part. As AppleInsider reports, Apple CFO Peter Oppenheimer revealed during an ensuing conference call that the company’s profits will shrink because of a key product transition in the July-September time frame. Oppenheimer stopped short of revealing what that transition would be, but he said the “new, unnamed product will continue to have ‘technologies and features that others can’t match.'” Apple expects the transition to cut gross margin from 34.8% to 31.5%.

With the iPhone 3G already out, it doesn’t take much to figure out which products Oppenheimer could have been talking about. The MacBook lineup will probably transition to Intel’s new Centrino 2 notebook platform before long, and Apple could take the opportunity to make some design changes and add new features. Apple’s now almost year-old iPod line is probably due for a refresh soon, too.

Comments closed
    • Rakhmaninov3
    • 11 years ago

    I still wish Apple would sell a version of OSX that ran on regular PCs right out of the box. That way I wouldn’t be spending several times what crappy, two-generation-old Apple desktop hardware is worth, but I could still get the benefits of OSX. I’d pay for it.

    That’d obviously be too much work for Apple, though, getting OSX to work with more of a variety of hardware and having it be popular enough to require virus protection measures, which Apple would have to develop.

      • adisor19
      • 11 years ago

      OS X already has quite a bit of “virus security measures” as you call them built in. This is not why Apple is not releasing it. It’s got more to do with what makes a mac different than a PC. OS X is THE main difference.

      Adi

        • Rakhmaninov3
        • 11 years ago

        Mmkay but if OSX is THE main difference, why not let me run it on a PC? Why not make money selling me that difference?

        I guess what I wish I could have in a perfect universe would be a computer with the latest PC hardware that had 2 ON buttons, one that would start OS X and one that would start Windows, so it could do everything the two could do separately.

        Then again it would be nice to have a car that transformed between a Lamborghini and a Geo depending on whether you were planning to get laid or save gas.

          • greeny
          • 11 years ago

          You cant buy it for pc cos you cant pirate a mac but you can pirate OSX so if you need a mac to run osx that sort of solves the piracy problem no? Besides who would buy mac hardware if you could run OSX on a pc? Nobody, thats who.

      • WillBach
      • 11 years ago

      I usually ignore posts in the vein of Mac vs PC, but I couldn’t resist commenting on your post, Rakhmaninov3.

      *[

    • Ricardo Dawkins
    • 11 years ago

    game console with touch support…

      • adisor19
      • 11 years ago

      It’s called the iPhone/Ipod Touch 🙂

      Adi

    • WillBach
    • 11 years ago

    *[<"...technologies and features that others can't match."<]* For this unnamed product to truly be new it would have to come out of left field. There are lots of people asking for a Mac tablet, and that would make sense, but it wouldn't be new enough*. Does anyone think that Apple could be working on an Eee-PC killer? Imagine a MacBook the same size as the Eee and about four to six times the price, or more likely one to two time the price with *[

    • Spurenleser
    • 11 years ago

    Maybe they’ll introduce some new product names “others can’t match”. Like “Mac10” or “MacGyver”.

    • PRIME1
    • 11 years ago

    Apple iPr0n

    • Ricardo Dawkins
    • 11 years ago

    Apple = 100% pure hype…

      • derFunkenstein
      • 11 years ago

      You’ve said some pretty retarded things, but really…since when is $1.07B in PROFIT hype?

        • d2brothe
        • 11 years ago

        I believe he means…its entirely based on hype, IE…people only buy apple because its apple…kind of like gucci or anything like that. You know, any company which sells products based on image and makes rediculus amounts of money on it. And his point has merit…a lot of merit…but I’d say maybe more like 90% hype

          • derFunkenstein
          • 11 years ago

          No, I don’t buy Apple because it’s Apple. I’m actually irritated with the probably 10%-20% of the buying marketplace that DOES do that. I’ll give you 10-20% hype (matching the percentage of the marketplace that buys the trendy brands), but not 100%.

            • d2brothe
            • 11 years ago

            I believe I said 90% not 100%… your clearly in the 10% (your even being here proves that). But I disagree with your numbers. 90% of the people in the world have no clue about computers. Macs are white and shiny….so they buy macs. I mean, just walk through the arts department of my university, you see thousands of students who paid more than they needed to just so they could have an apple. Trust me on this, better product or not, apple sells TONS on image. Don’t ask me to prove it, just go ask your average clueless user.

            • blastdoor
            • 11 years ago

            By that reasoning, one could argue that 90% of most companies are based on hype. Most people who buy Dells and HPs and graphics cards that are faster than what they need etc etc are buying on “hype”.

            • FubbHead
            • 11 years ago

            The big difference is the money paid and the performance and features got.

            • SGT Lindy
            • 11 years ago

            Thats thousands of students that have not spent 1 second, installing or using Ant-malware software. Imagine that.

            Just think of all of the extra cpu cycles used to protect the Windows PC’s of the world. You could probably power a state full of folding home PC’s.

            You pay for what you get.

            • A_Pickle
            • 11 years ago

            Enjoy it while it lasts. Mac OS will need it someday too…

            • derFunkenstein
            • 11 years ago

            I know, I went to edit my comment and it said that I hit the posting limit, so I had to leave 100% alone for like 5 minutes, then I forgot to edit afterwards.

            • Kharnellius
            • 11 years ago

            You know, I work in the Apple Dept of our store and I get more people buying Macs through friend referrals than any other brand I have ever seen. Most of the time they don’t even know about the ads I mention on TV. Instead, they had a friend who just loved how well it ran and made said customer try it. Customer was sold and came in to buy one.

            That’s not hype.

            And it’s very VERY consistent. I don’t even own a single apple product (not even an ipod and yes… I work in the Apple dept…irony?) and I can’t deny what I see day in and day out.

          • adisor19
          • 11 years ago

          See, that comparison is wrong. Apple laptops/desktops actually give you features that have a bit more substance then just the brand name and recognition.

          I have mentioned them earlier : FULL POWERED Firewire 400 and 800 ports on the laptops(and desktops obviously), Magsafe power connector(has already saved my laptop so many time, i am not considering another laptop in the future without a similar power cord connector), multi-touch(god send when it comes to small devices like the iPhone), optical in/out standard on all their computers and of course let’s not forget the main thing : OS X.

          There is more to it then just the Apple name. Nice trolling attempt though.

          Adi

      • SGT Lindy
      • 11 years ago

      Yeah give me some of that projected 30 billion this year in hype. You sir are a tard.

    • Tumbleweed
    • 11 years ago

    Or the new chips for iPhones/iPods whatever, since Apple just bought a semiconductor company.

    • XSaaber
    • 11 years ago

    One word, AMD.

    Hard to say really, most likely a move to Centrino 2.

      • derFunkenstein
      • 11 years ago

      man that’d be brutal. New chipset drivers, new CPU drivers, new OS kernel…but if they did it in a mid-range consumer tower with an upgradable GPU, I’d be pretty stoked. AMD, Intel, I don’t care. I want my xMac. Which wont’ happen because Jobs hates consumers that might want to play games.

        • d2brothe
        • 11 years ago

        CPU drivers? They wouldn’t need a new kernel anyways, OSX will already run on AMD machines with proper drivers….

        In either case, its unlikely to happen.

        Also, apple doesn’t have consumers it has minions…

          • derFunkenstein
          • 11 years ago

          OK, I don’t know what I was drinking when I said “CPU Drivers” that makes no sense.

          But the kernel needs patched to run on AMD machines. A patched kernel runs but the stock kernel requires a Core2.

            • d2brothe
            • 11 years ago

            Will it not also run on the P-D…I thought it would…in either case, I know someone running it on an AMD machine, I will ask him.

            Also, again note, there is a difference between patching some non-kernel components and changes to the kernel.

            • derFunkenstein
            • 11 years ago

            You have to hack the kernel for the Pentium D too, as support for the entire Pentium 4 family was removed from the kernel version released with actual Macs.

          • adisor19
          • 11 years ago

          I agree that many of the Apple faithful are minions but some of them actually prefer OS X and the little but significant features of Apple portables/desktops. Truth be told, the price difference is no longer insane compared to other brands of computers out there. Apple back in its desperate times/PPC times was indeed charging too much for the performance it offered. These days, it’s much easier to compare and thus figure out whether the extras are worth the price difference.

          For me, my Mac Book Pro purchase from 1.5 years ago was and still is one of the best investments I’ve done in my computer equipment.

          Adi

        • blastdoor
        • 11 years ago

        I must be careful about how I say this….

        I think Jobs saved apple and has done more for apple than any CEO for any company in my lifetime.

        HOWEVER, I think he’s completely wrong on the whole xMac question, which is why I think all of the fear about his leaving apple is way overdone. I suspect that if Jobs were to leave apple today (hopefully because he is bored and wants to do something else), it would actually benefit apple over the next 5 years or so as a new CEO could correct some of Jobs’ mistakes. And the lack of an xMac would be at the top of his list. It’s a no brainer way to grab at LEAST another 500,000 mac sales per quarter.

          • derFunkenstein
          • 11 years ago

          I agree. I actually kind of *hope* he retires soon to make room for products that he personally blocks.

            • A_Pickle
            • 11 years ago

            You almost have to wonder though, that… if he leaves Apple, will Apple be Apple anymore? I mean, it’s under his guidance that Apple’s corporate culture is defined, and its corporate culture stands out among other companies.

            Without Jobs, you may very well get your xMac, but you may lose the Apple that says “No” to things like bloatware, or cutting corners, or that really stand-out “simplicity first” design which… like it or not, make Apple the Apple we all know and love (or hate).

            Apple is a GOOD computer company, they promise to their customers that, if they do their computing the way Apple tells them to do their computing, they’ll be happy. For the most part it works — average folks have to TRY to screw up their Mac, and even then they’ll probably fail. They follow the Apple way, and they’ll be happy.

            Now, I’m not saying that’s a bad thing, especially in the area of personal computing, where average people are about as intelligent as a stick of butter. But some people like having choice, and some people like having full DVI ports on their laptops, and some people like upgradable desktops. That’s their perogative — but it’s not the Apple way… and it may never be. That’s… too PC…

            • blastdoor
            • 11 years ago

            I certainly agree that is the tradeoff. In the first 5 years after Jobs leaves, I suspect apple will actually benefit from his absence. But in the longer term it’s less clear. Apple could become just another big computer company. Hopefully Jobs chooses a successor who strikes a good balance between creativity and practicality.

            • adisor19
            • 11 years ago

            Ok come on now, at least bash with facts and not bs.

            “and some people like having full DVI ports on their laptops, and some people like upgradable desktops.”

            My Mac Book Pro does have a FULL DVI port and the low end Mac Book has a mini DVI port that can be used for : DVI, VGA AND S-Video. Compare that the 99% of Windows laptops out there that only have VGA out.

            As for the upgradeable desktop, the Mac Pro is fully upgradeable. Not cheap, but fully upgradeable.

            Adi

            • vince
            • 11 years ago

            Upgradable, and unaffordable!

            What I would like to see, is a Mac Pro-like desktop (i.e., upgradable), that is more affordable. Now that would be formidable! (is that what people mean when they talk about an xMac?)

            • derFunkenstein
            • 11 years ago

            Yes. The xMac moniker started at Ars, I think, and I first saw it used by John Siracusa, but the xMac has generally always been a consumer-priced tower like the later lower-end G4 towers and even the $1600 lowest-end 1.6GHz G5 tower used to be.

            • A_Pickle
            • 11 years ago

            g[

            • adisor19
            • 11 years ago

            “…providing you purchase that extra adaptor, right? Because it doesn’t come with that.. and how many projectors/monitors are ready to be used with DVI, let alone the mini-DVI found on a MacBook? Gee, that’s useful. And I’m glad you mentioned that, keeping in with your usual objectivity on just about any topic that involves Apple and negative criticism.”

            See you just did it again. You complain about the Mac Book coming with a mini DVI port that can be used to output DVI, VGA, S-Video with a cheap adaptor and then you say this :

            “…which can be used… immediately, with most external displays, and… can also be converted to DVI or S-video with the proper adaptors. In the meantime, though, you have a VGA port that you can use… immediately. Thanks, I’ll take that.

            You can’t convert a VGA signal to : DVI without spending an insane amount of $$$. Are you nuts ?! Thank you very much but I’ll take a DVI or mini DVI port any day compared to a sad VGA port that lacks in quality and that can NOT be used on a DVI monitor/device without investing hundreds of $$$.

            I thought your whole point was to point out how you need mind blowing expensive adaptors for that mini DVI/full DVI port, yet you conveniently decided to ignore the issue with the VGA port.

            Adi

            • A_Pickle
            • 11 years ago

            …are you serious? VGA doesn’t look that bad. As a matter of fact, DVI only “looks” better because it’s digital, and you KNOW it’s digital. Put two identical 1920×1200 displays side-by-side, hook one up via DVI and the other via VGA, and I can’t tell the difference.

            And… expensive adapters? Are you serious? I believe I’m usually given a DVI-to-VGA adapter with every graphics card I buy… and a couple gender changers would cost me, what, six dollars? Oh no, TEN with shipping and handling…

            Thanks for remaining the steadfast fanboy.

    • blastdoor
    • 11 years ago

    Apple certainly has given a nice gift to rumor mongers everywhere. I get the impression that they are talking about both technological advantages and economies of scale advantages. The only area where apple has an economies of scale advantage is in their use of NAND. Their biggest technological advantage is in their “touch platform” (iPhone / iPod touch)

    So I think this means that they will try to aggressively expand the touch platform. I would expect lower prices on existing models and perhaps new models with an expanded feature set.

    I agree that new macbooks / MBPs are coming, but I don’t think that would be sufficient to warrant the lower margins and the aggressive rhetoric.

    • adisor19
    • 11 years ago

    The product transition is the new Mac Book Pros. They’re pretty much the same model since 2006 so it’s now time to redo them with more flexibility in mind especially when it comes to the battery.

    Adi

      • ludi
      • 11 years ago

      Okay, but which of the possible margin-cutting upgrades will it be? OLED displays, SSD drives across the board, or both? Lazy rumor-mongers like me want to know…

        • adisor19
        • 11 years ago

        Umm, well that’s hard to say… there’s only been a leak in regards to the new aluminum enclosure, and that’s about it. The rest, i have no idea and it’s pure speculation…

        Adi

      • ssidbroadcast
      • 11 years ago

      Not really. They got the Santa-Rosa platform when the Macbooks did, and they got the g86 parts.

    • bowman
    • 11 years ago

    Nehalem Mac Pro’s? Perhaps they had to pay extra to get early dibs on Gainestown.

      • jdaven
      • 11 years ago

      I don’t think Intel’s next processor generation “will continue to have ‘technologies and features that others can’t match.’ ” I mean they will be out for competitors to buy also if they want to. Come on people think outside the box. It has to be something that costs a lot of money that no one else can afford to do for the next 1 to 2 years. This would include expensive OLED displays, large touchscreens (ala Mac tablet PC), flash memory (i.e. SSD hard drives), configure Windows on Mac at purchase time for free (no other company can offer Mac OS and Windows on same machine), etc.

      A low margin desktop Mac would also not fit the bill. Yes you make less profit but it doesn’t satisfy the ‘technologies and features that others can’t match’ category.

    • StashTheVampede
    • 11 years ago

    What other tech can lower profit margins other than commodity desktop computers? xMac, here we go!

      • derFunkenstein
      • 11 years ago

      ohhhhh please oh please oh please oh please oh please oh please oh please oh please oh please

      • d0g_p00p
      • 11 years ago

      Agreed. Apple really need to make a $1500 Mac that is single socket and expandable system. It’s a huge gap in their product line.

        • desertfox84
        • 11 years ago

        I agree there’s a huge gap in Apple’s product line for people like you and me (those who want the expandability of a tower but don’t need a Mac Pro), however I think we’re a niche market that apple doesn’t care about.

        From Apple’s perspective, if you want expandability then you must be a power user; therefore you should buy a Mac Pro. If you aren’t a power user, then you must be interested in an aesthetically pleasing computer with a small footprint; therefore you should buy an iMac.

        I’m totally onbard with you on this one – I /[

          • SGT Lindy
          • 11 years ago

          Could not agree more. Total niche market. The iMac is all the desktop 99.999% of normal Mac users need. Power Mac users will get a Power Mac.

          Notebooks sell way more than desktops, have been since 2005.

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