Apple Reports First Quarter Results

Best Quarterly Revenue & Earnings in Apple History

Mac, iPod & iPhone Sales Break Previous Records

CUPERTINO, California—January 22, 2008—Apple® today announced financial results for its fiscal 2008 first quarter ended December 29, 2007. The Company posted revenue of $9.6 billion and net quarterly profit of $1.58 billion, or $1.76 per diluted share. These results compare to revenue of $7.1 billion and net quarterly profit of $1 billion, or $1.14 per diluted share, in the year-ago quarter. Gross margin was 34.7 percent, up from 31.2 percent in the year-ago quarter. International sales accounted for 45 percent of the quarter’s revenue.

Apple shipped 2,319,000 Macintosh® computers, representing 44 percent unit growth and 47 percent revenue growth over the year-ago quarter. The Company sold 22,121,000 iPods during the quarter, representing five percent unit growth and 17 percent revenue growth over the year-ago quarter. Quarterly iPhone™ sales were 2,315,000.

“We’re thrilled to report our best quarter ever, with the highest revenue and earnings in Apple’s history,” said Steve Jobs, Apple’s CEO. “We have an incredibly strong new product pipeline for 2008, starting with MacBook Air, Mac Pro and iTunes Movie Rentals in the first two weeks.”

“Apple’s revenue grew 35 percent year-over-year to $9.6 billion, an increase of almost $2.5 billion over the previous December quarter’s record-breaking results,” said Peter Oppenheimer, Apple’s CFO. “Our strong results produced cash flow from operations of over $2.7 billion during the quarter, yielding an ending cash balance of over $18.4 billion. Looking ahead to the second quarter of fiscal 2008, we expect revenue of about $6.8 billion and earnings per diluted share of about $.94.”

Apple Enhances Revolutionary iPhone with Software Update

MACWORLD SAN FRANCISCO—January 15, 2008—Apple® today announced a free software update for its revolutionary iPhone™ that allows users to automatically find their location using the redesigned Maps application*; text message multiple people in one message; create Web Clips for their favorite websites; customise their home screen; and watch movies rented from the new iTunes® Movie Rentals right on their iPhone. With its revolutionary multi-touch user interface and pioneering software, users can easily add significant new features to their iPhone through software updates whenever an update becomes available. New iPhone products shipping from the factory will include the software update and existing iPhone customers will automatically get the update for free when they sync their iPhone with iTunes (www.itunes.com/uk).

“iPhone doesn’t stand still—we’re making it better and better all the time,” said Steve Jobs, Apple’s CEO. “We’ve delighted millions of users with this revolutionary and magical product and it’s great to share these improvements with them.”

Maps, one of the most popular and helpful applications on iPhone, has a new interface that is simpler and easier to use and adds incredible new features such as the ability to find your location automatically. With just the tap of a button, iPhone can now triangulate your position using nearby Wi-Fi base stations or cellular towers. You can use this as a starting or ending point for directions or to find local points of interest. The new hybrid map view combines map view and satellite view so you can see major street names overlaid on satellite imagery.

Users can now create Web Clips—icons on the home screen that take you directly to your favorite websites, including to the exact spot you have zoomed into. Web Clips are a great way to easily track websites that you frequently check such as news, blogs, sports sites and movie listings. In addition, users can now customise their home screen by repositioning any of the icons, and even create up to nine different home screens that they can easily flick between.

iPhone’s new software update also adds the ability to send the same SMS text message to multiple people, and iPhone saves a history of your text messages, so with one tap you can send a new message to the same group.

With Apple's new iTunes Movie Rentals, movie fans can rent movies on their computer, easily and quickly transfer them to their iPhone, and watch them anywhere on iPhone's gorgeous 3.5 inch screen. Users can also now navigate forward or backward through their movies by chapters, select alternate language tracks and view subtitles, if available.

Pricing & Availability
The iPhone software update 1.1.3 is available immediately for free via iTunes 7.5 or later for all existing iPhone customers in the US, UK, Germany and France. New iPhone products shipping from the factory will include the software update and existing iPhone customers will automatically get the update for free when they sync their iPhone with iTunes (www.itunes.com/uk). iTunes Movie Rentals are available in the US only. Further information for iPhone can be found at www.apple.com/uk/iPhone.

*Availability and precision of Maps positioning features will vary depending on actual location.

20th Century Fox & Apple Introduce iTunes Digital Copy


DVDs Include Free Copy of Movie for iTunes


MACWORLD SAN FRANCISCO—January 15, 2008—20th Century Fox and Apple® today announced iTunes® Digital Copy, which provides customers who purchase a DVD with a free iTunes Digital Copy of the movie. Just like movies purchased from the iTunes Store, an iTunes Digital Copy can effortlessly be transferred to iTunes and then viewed on a PC or Mac®, iPod® with video, iPhone™ or on Apple TV®. The first DVD to make its debut with iTunes Digital Copy is the DVD premiere of the Family Guy Star Wars spoof, “Blue Harvest,” which is being released in stores today. Fox and Apple are planning to deliver many more DVDs with iTunes Digital Copy this year.

“One of the most requested features DVD buyers have been asking for is the ability to get the movies they bought into their iTunes library,” said Jim Gianopulos, chairman and chief executive officer of Fox Filmed Entertainment. “We’re thrilled to offer such an incredibly simple way for our customers to get even more out of their DVD purchase, and we look forward to releasing many more DVDs this year with iTunes Digital Copy.”

“Now movie fans can easily transfer a free copy of the movie they purchase on DVD into iTunes,” said Steve Jobs, Apple’s CEO. “DVDs containing an iTunes Digital Copy allow movie fans to get a copy of their movie which can be viewed on a computer, iPod, iPhone or on Apple TV.”

The new iTunes Digital Copy provides a consumer friendly way to transfer a DVD purchase to a user’s iTunes library. Once a customer buys the DVD, they insert it into their computer, enter a unique code into iTunes and iTunes automatically copies the movie to their iTunes library within minutes. Customers own the iTunes Digital Copy of the movie and it has all of the same great viewing options as other iTunes Store video content, including the ability to be viewed on a computer, iPod with video, iPhone and Apple TV. Each DVD will only transfer its iTunes Digital Copy to one iTunes library.

One of the world’s largest producers and distributors of motion pictures, Fox Filmed Entertainment produces, acquires and distributes motion pictures throughout the world.  These motion pictures are produced or acquired by the following units of FFE:  Twentieth Century Fox, Fox 2000 Pictures, Fox Searchlight Pictures, Fox Atomic, and Twentieth Century Fox Animation. FFE also includes Twentieth Century Fox Home Entertainment, the worldwide marketing, sales and distribution company for all Fox film and television programming on VHS, DVD and Blu-ray Disc (BD) as well as acquisitions and original productions.

Apple Announces Time Capsule

Wireless Backup for all Your Macs

MACWORLD SAN FRANCISCO—January 15, 2008—Apple® today introduced Time Capsule, a backup appliance that automatically and wirelessly backs up everything on one or more Macs running Leopard™, the latest release of Apple’s Mac OS® X operating system including the amazing Time Machine™ automatic backup software. Time Capsule combines an 802.11n base station with a server grade hard disk in one small package. Simply plug it in, then easily set up automatic wireless backup for every Mac® in your house to a single Time Capsule with just a few clicks. Time Capsule offers the benefits of a full-featured 802.11n Wi-Fi base station, and comes in two models: a 500 gigabyte model for just £199 (inc VAT) and a 1 terabyte model for just £329 (inc VAT).

“Bring Time Capsule home, plug it in, click a few buttons on your Macs and voila—all the Macs in your house are being backed up automatically, every hour of every day,” said Steve Jobs, Apple’s CEO. “With Time Capsule and Time Machine, all your irreplaceable photos, movies and documents are automatically protected and incredibly easy to retrieve if they are ever lost.”

Built to work seamlessly with Time Machine, Time Capsule lets users wirelessly back up all of the data on their Macs, find lost files and even restore all of their software. In the event a file is lost, users can wirelessly search back through time to find deleted files, applications, photos and other digital media and then instantly restore the file. If it’s ever necessary, Leopard can also easily restore an entire system from the Time Machine backup on Time Capsule.

In addition to being the best way to back up a Mac, Time Capsule is also a full-featured Wi-Fi base station with the latest 802.11n technology. Delivering up to five times the performance and twice the range of 802.11g, 802.11n* is built in to Apple’s iMac® desktop and the entire Mac notebook line up, including MacBook®, MacBook Pro and the new MacBook Air. Time Capsule features a sleek design with a built-in power supply and connections to print wirelessly to a USB printer. With Time Capsule, it’s very easy for users to create a secure, wireless network for up to 50 users and set security restrictions such as Internet access limits for children’s computers.

At £199 (inc VAT) for a 500GB model and £329 (inc VAT) for a 1TB model and a fully integrated 802.11n AirPort Extreme® Base Station, Time Capsule can serve as a backup solution for multiple computers as well as the backbone for a high-speed, 802.11n wireless network, making it effortless and affordable for everyone at home, school or work to protect their digital files.

Additional Time Capsule features include:
• dual-band antennas for 2.4 GHz or 5 GHz frequencies;
• three Gigabit LAN ports;
• one Gigabit Ethernet WAN port;
• one USB 2.0 port;
• Wi-Fi Protected Access (WPA/WPA-2), 128-bit WEP encryption; and
• a built-in NAT firewall supporting NAT-PMP for features like Back to My Mac.

Pricing & Availability
Time Capsule will be available in February for a suggested retail price of £199 (inc VAT) for a 500GB hard drive and £329 (inc VAT) for a 1TB hard drive. 

*Time Capsule is based on an IEEE 802.11n draft specification. Actual performance will vary based on range, connection rate, site conditions, size of network and other factors. 

Apple Introduces MacBook Air—The World’s Thinnest Notebook

MACWORLD SAN FRANCISCO—January 15, 2008—Apple® today unveiled MacBook® Air, the world’s thinnest notebook. MacBook Air measures an unprecedented 0.16-inches at its thinnest point, while its maximum height of 0.76-inches is less than the thinnest point on competing notebooks. MacBook Air has a stunning 13.3-inch LED-backlit widescreen display, a full-size and backlit keyboard, a built-in iSight® video camera for video conferencing, and a spacious trackpad with multi-touch gesture support so users can pinch, rotate and swipe. MacBook Air is powered by a 1.6 GHz or 1.8 GHz Intel Core 2 Duo processor with 4MB L2 cache, and includes as standard features 2GB of memory, an 80GB 1.8-inch hard drive, and the latest 802.11n Wi-Fi technology and Bluetooth 2.1.

“We’ve built the world’s thinnest notebook—without sacrificing a full-size keyboard or a full-size 13-inch display,” said Steve Jobs, Apple’s CEO. “When you first see MacBook Air, it’s hard to believe it’s a high-performance notebook with a full-size keyboard and display. But it is.”

MacBook Air has a vibrant 13.3-inch LED-backlit glossy widescreen display that is energy efficient, and its spacious trackpad offers multi-touch gesture support for pinch, rotate and swipe, making it more intuitive than ever to browse and rotate photos or zoom into web pages in Safari™. MacBook Air features a full-size keyboard design in a sleek and durable aluminum enclosure. The backlit keyboard makes it ideal for dimly lit environments such as airplanes, studios or conference halls, and a built-in ambient light sensor automatically adjusts the brightness of the keys as well as the display brightness for optimal visibility.

MacBook Air delivers up to five hours of battery life for wireless productivity and includes AirPort Extreme® 802.11n Wi-Fi networking, which delivers up to five times the performance and twice the range of 802.11g*. Apple’s Migration Assistant software now enables users to quickly transfer files, applications and preferences from your old Mac® to MacBook Air right over your wireless network.

MacBook Air users can buy the companion MacBook Air SuperDrive, a compact external drive designed for MacBook Air, for just £65 (inc VAT). The MacBook Air SuperDrive® is powered by MacBook Air’s USB port, eliminating the need to carry a separate power adapter. Many MacBook Air users will not find a need for an optical drive now that they can wirelessly backup files with Time Capsule and access the optical drives on remote PCs or Macs to wirelessly install software applications on MacBook Air.

MacBook Air is powered by Intel Core 2 Duo processors running at 1.6 GHz or 1.8 GHz, and includes as standard 2GB of memory and an 80GB 1.8-inch hard drive. An optional 64GB solid state drive contains no moving parts for added durability. Every MacBook Air includes a micro-DVI port so users can connect to Apple’s gorgeous 20-inch or 23-inch Cinema Displays to extend their desktop or connect to projectors and other displays via DVI, VGA, Composite and S-video adaptors. MacBook Air includes USB 2.0 for plugging in peripherals or charging an iPod® or iPhone™, a headphone jack and Apple’s acclaimed MagSafe® Power Adapter designed especially for mobile users.

Every MacBook Air comes with iLife® ‘08, the most significant update ever to Apple’s award-winning suite of digital lifestyle applications, featuring a major new version of iPhoto® and a completely reinvented iMovie®, both seamlessly integrated with the new .Mac Web Gallery for online photo and video sharing. The new MacBook Air also comes with Leopard™, the sixth major release of the world’s most advanced operating system. Leopard introduces Time Machine™, an effortless way to automatically back up everything on a Mac; a redesigned Finder that lets users quickly browse and share files between multiple Macs; Quick Look, a new way to instantly see files without opening an application; Spaces, an intuitive new feature used to create groups of applications and instantly switch between them; a brand new desktop with Stacks, a new way to easily access files from the Dock; and major enhancements to Mail and iChat®. .Mac members can use the new Back to My Mac feature to browse and access files on their home computer from a MacBook Air over the Internet while out on the road.

The new MacBook Air embodies Apple’s continuing environmental progress with its aluminum enclosure, a material highly desired by recyclers; Apple’s first mercury-free LCD display with arsenic-free glass; and brominated flame retardant-free material for the majority of circuit boards as well as PVC-free internal cables. In addition, MacBook Air consumes the least amount of power of any Mac, and its retail box, made primarily from 100 percent post-consumer recycled material, is 56 percent smaller by volume than the previously smallest MacBook packaging.

Pricing & Availability
The new MacBook Air will be shipping in two weeks for a suggested retail price of £1,199 (inc VAT), and includes:

• 13.3-inch LED-backlit glossy widescreen display with 1280x800 resolution;
• 1.6 GHz Intel Core 2 Duo processor with 4MB L2 cache;
• 800 MHz front-side bus;
• 2GB of 667 MHz DDR2 SDRAM;
• 80GB hard disk drive with Sudden Motion Sensor;
• Intel Graphics Media Accelerator X3100;
• Micro-DVI port (includes Micro-DVI to VGA and Micro-DVI to DVI Adapters);
• built-in iSight video camera;
• built-in AirPort Extreme 802.11n wireless networking and Bluetooth 2.1+EDR;
• one USB 2.0 port;
• one headphone port;
• multi-touch TrackPad with support for advanced multi-touch gestures including tap, scroll, pinch, rotate and swipe; and
• 45 Watt MagSafe Power Adapter.

Build-to-order options and accessories include the ability to upgrade to a 1.8 GHz Intel Core 2 Duo processor; 64GB solid state drive, MacBook Air SuperDrive, Apple USB Ethernet Adaptor, Apple USB Modem, Apple MagSafe Airline Adaptor, Apple Remote and the AppleCare Protection Plan. Additional build-to-order options also include pre-installed copies of iWork ‘08, Logic® Express 8, Final Cut® Express 4 and Aperture™ 1.5.

*Battery life depends on configuration and use. See www.apple.com/uk/batteries for more information. AirPort Extreme is based on an IEEE 802.11n draft specification. Actual performance will vary based on range, connection rate, site conditions, size of network and other factors. 

Apple Announces Major Software Upgrade for iPod touch

MACWORLD SAN FRANCISCO—January 15, 2008—Apple® today announced a major software upgrade for the iPod® touch, making the best iPod into even more—the world’s best Wi-Fi mobile device. iPod touch customers already have the most advanced mobile web browser in the world with Safari™, and now Apple is adding five more great mobile applications—Mail, Maps, Stocks, Weather and Notes. The iPod touch software upgrade also includes new features such as Web Clips and a customisable home screen. New iPod touch products shipping from the factory will include the software upgrade and existing iPod touch customers can get the software upgrade for £12.99 (inc VAT) by purchasing and downloading it from iTunes (www.itunes.com/uk).

“These amazing new mobile applications make iPod touch not only the best iPod, but the best Wi-Fi mobile device in the world,” said Steve Jobs, Apple’s CEO. “With its revolutionary touch interface and software, plus its stunning 3.5 inch screen, iPod touch is evolving into the first mainstream Wi-Fi mobile platform of the 21st century.”

Mail on iPod touch is a rich HTML email client that fetches email in the background from most POP3 or IMAP mail services and displays photos and graphics along with the text of the email. Users can configure Mail for Google’s Gmail, Yahoo! Mail, .Mac Mail or most POP or IMAP based mail services with just a few clicks.

Maps on iPod touch features the ability to automatically find your current location using nearby Wi-Fi base stations*, and use it as a starting or ending point for directions or to find local points of interest. Users can get real-time traffic conditions, and view maps in map or satellite view, or a hybrid view which combines map and satellite views so you can see major street names overlaid on satellite imagery.

Stocks and Weather allow users to access live stock and weather reports at their fingertips, and Notes lets you jot down information on-the-go using the intelligent keyboard.

The iPod touch home screen can now be customised, allowing users to reorder and add new icons, with support for up to nine different home screens which they can easily flick between. With the new Web Clips feature, you can even create custom icons on your home screen for your favorite websites. Web Clips are a great way to easily track web sites that you frequently check such as news, blogs, sports sites, movie listings and more.

With Apple’s new iTunes Movie Rentals, movie fans can rent movies on their computer, easily and quickly transfer them to their iPod touch, and watch them anywhere on iPod touch’s gorgeous 3.5 inch screen. Users can also now navigate forward or backward through their movies by chapters, select alternate language tracks and view subtitles, if available.

Pricing & Availability
The software upgrade for iPod touch is available immediately. New iPod touch products shipping from the factory will include the software upgrade and existing iPod touch customers can get the software upgrade for £12.99 (inc VAT) by purchasing and downloading it from iTunes (www.itunes.com/uk). iTunes Movie Rentals are available in the US only. Further information for iPod touch can be found at www.apple.com/uk/iPod.